Bitwise Files S-1 for Spot Avalanche (AVAX) ETF
Bitwise Asset Management has filed an S-1 registration statement with the U.S. SEC to launch a spot Avalanche (AVAX) ETF. The proposed Avalanche ETF will hold actual AVAX tokens, tracking net asset value via the CME CF Avalanche-Dollar Reference Rate. Coinbase Custody Trust Company, regulated under New York banking law, will store tokens in segregated cold storage. Shares will be issued in 10,000-share baskets, redeemable in cash or AVAX.
Other asset managers, including VanEck and Grayscale, have submitted similar AVAX ETF proposals, signaling rising institutional interest in altcoin ETFs. AVAX recently traded above $30, reflecting a 6% one-day gain, though it remains down over 50% from its all-time high. Approval of this regulated Avalanche ETF is pending SEC review and potential amendments. Traders should monitor filing updates, custodian arrangements, and AVAX price movements, as an approved ETF could boost liquidity and price discovery in the Avalanche ecosystem.
Bullish
Bitwise’s S-1 filing and follow-up proposals by other major asset managers are poised to increase institutional and retail interest in AVAX, boosting market visibility and liquidity. In the short term, the announcement could catalyze buying momentum as traders position for potential ETF approval. Over the long term, a regulated spot Avalanche ETF would provide a transparent, efficient avenue for direct AVAX exposure, enhancing price discovery and reducing volatility. Historical precedents from Bitcoin and Ethereum spot ETF approvals show significant inflows and sustained market growth, suggesting a similarly bullish impact on AVAX.