Grayscale Investments has formally submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) to convert its existing Avalanche Trust into a spot Avalanche (AVAX) exchange-traded fund (ETF). The proposed fund, to be listed on Nasdaq under the ticker AVAX, aims to provide investors with direct exposure to the cryptocurrency through traditional brokerage accounts without requiring them to handle digital wallets or private keys.
The Grayscale Avalanche ETF will hold physical AVAX tokens and use the CoinDesk AVAX CCIXber Reference Rate to calculate its daily net asset value (NAV). The fund will issue and redeem shares in blocks of 10,000, known as Baskets, through authorized participants using an initial cash-based creation and redemption process. Coinbase Custody will serve as the custodian for the AVAX holdings, while BNY Mellon will act as administrator and transfer agent.
This filing follows Nasdaq's initial application to list the fund in March 2025 and comes exactly one year after Grayscale launched the Avalanche Trust in August 2024. The trust currently holds the 18th position in digital asset market capitalization with a valuation of approximately $7.6 billion as of June 2025.
Notably, the filing indicates that if approved, the ETF may implement staking capabilities for up to 85% of its AVAX holdings, allowing the trust to earn rewards through a provider-facilitated model while maintaining security protocols and custody conditions. Staking rewards could be reinvested, distributed to shareholders, or used to cover fees at the sponsor's discretion.
This development represents Grayscale's continued expansion beyond Bitcoin and Ethereum products, following similar filings for XRP and Dogecoin trusts earlier this year, as part of the company's broader strategy to offer spot-based access to various cryptocurrency tokens.