Grayscale Seeks SEC Approval for Nasdaq AVAX Spot ETF

Grayscale Investments filed an S-1 registration with the U.S. SEC on August 22, 2025, to convert its Avalanche Trust into a spot AVAX ETF trading on Nasdaq under the ticker AVAX. The proposal, marking the second stage of approval, would rename the fund the Grayscale AVAX Trust ETF. The AVAX ETF will use a basket-based creation/redemption system of 10,000 shares per basket. Authorized participants can transact in cash, while a designated liquidity provider handles AVAX token trading. Coinbase Custody will secure holdings and BNY Mellon will manage fund administration. Pending regulatory sign-off, up to 85% of AVAX assets may be staked to generate yield. VanEck has also filed for an Avalanche ETF, with its application acknowledged by the SEC in April 2025 and a decision expected following a July delay. AVAX traded at $24.3, down over 35% year-to-date, compared with roughly 70% gains for Bitcoin and Ethereum. Launching an AVAX ETF could broaden retail and institutional access to AVAX, test U.S. regulators’ stance on altcoin ETFs, and influence AVAX liquidity and staking dynamics.