Grayscale Investments Advances Efforts for Spot Avalanche ETF
Grayscale Investments is advancing its efforts to create a spot Avalanche (AVAX) exchange-traded fund (ETF), further solidifying the growing institutional interest in blockchain technology. On March 27, 2025, Nasdaq filed an application to list and trade the Grayscale Avalanche Trust shares as an ETF with the U.S. Securities and Exchange Commission (SEC). This marks a significant step toward offering a more accessible and efficient way for investors to gain exposure to Avalanche, despite a recent dip in the price of AVAX.
As of the most recent data, AVAX’s price has dropped by more than 7%, hovering around $20. This price decline comes amid broader market volatility. However, the filing for the ETF shows that Grayscale is focusing on long-term institutional demand for Avalanche as a key player in decentralized finance (DeFi) and blockchain technology, regardless of short-term price fluctuations.
ETF Structure and Benefits
The main goal of the proposed Grayscale Avalanche ETF is to mirror the market value of AVAX based on a benchmark index designed to track the price of the token. Through this ETF, Grayscale aims to make it easier for investors to gain exposure to AVAX without directly holding the token itself. This streamlined process eliminates the technical barriers typically associated with self-custody or using cryptocurrency exchanges, making it more accessible to mainstream investors.
This product could be a game-changer for institutional investors, who may find it simpler and more secure to invest via an ETF rather than directly interacting with cryptocurrency markets. By using an ETF, investors can avoid managing private keys or dealing with complex wallet solutions.
The filing revealed that CSC Delaware Trust Company will serve as the trustee for the fund, while Coinbase Custody Trust Company will provide custodial services. Additionally, BNY Mellon will take on the role of administrator and transfer agent, while Foreside Fund Services will manage marketing for the product. CoinDesk Indices, Inc. will provide the benchmark index to ensure the ETF’s performance reflects AVAX’s market value.
Avalanche Trust’s Transformation
Grayscale’s Avalanche Trust, which currently manages about $1.7 million in assets, could potentially be converted into a publicly traded product if the ETF is approved by the SEC. The Trust charges a relatively high annual fee of 2.5%, but transitioning to an ETF could offer greater liquidity and broader adoption, especially among institutional investors. The ETF filing could help increase demand for Avalanche, cementing its role in the global blockchain landscape.
Institutional Interest in Avalanche
Grayscale is not the only firm exploring AVAX ETFs. Earlier in March 2025, asset manager VanEck also filed with the SEC for a similar product, reflecting broader institutional interest in the Avalanche blockchain. This growing interest highlights Avalanche’s recognition as a leading blockchain, known for its speed, scalability, and low-cost transactions—key features for decentralized finance applications.
Support from Ava Labs CEO
Emin Gün Sirer, the founder and CEO of Ava Labs, the organization behind Avalanche, expressed his support for the rising interest in AVAX ETFs. He believes these products represent an innovative way for investors to engage with blockchain technology, especially for those without deep technical knowledge. Sirer emphasized that AVAX ETFs could bridge the gap between traditional investors and the world of blockchain, ultimately accelerating the adoption of decentralized finance and Web3 technologies.
Future Outlook
Despite recent price volatility, the long-term outlook for Avalanche and its native token remains strong. As the ETF filings from Grayscale and VanEck progress through the regulatory process, they could open the door for a new wave of institutional investors to enter the Avalanche ecosystem. If the SEC approves these ETFs, it could boost demand for AVAX and strengthen its position in the blockchain space.
In conclusion, the push for a Nasdaq-listed AVAX ETF demonstrates the growing institutional interest in Avalanche. With support from major players like Grayscale and VanEck, the future of Avalanche as a mainstream blockchain platform looks promising, potentially transforming how investors interact with decentralized technologies.
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