Grayscale Seeks SEC Approval for Spot Avalanche ETF on Nasdaq

Grayscale Investments is making another push into the cryptocurrency ETF space by filing for a spot Avalanche (AVAX) exchange-traded fund (ETF) to be listed on Nasdaq. The filing, submitted on March 28 via a Form 19b-4, signals Grayscale’s ongoing efforts to expand regulated investment opportunities for digital assets. If approved by the U.S. Securities and Exchange Commission (SEC), this ETF would directly hold AVAX tokens, allowing investors to gain exposure to Avalanche without the need to buy and store the asset themselves.

This move builds on Grayscale’s previous offerings, including the Grayscale Avalanche Trust, which was launched in August 2024. The trust has already provided accredited investors with a way to invest in AVAX indirectly. As of mid-March 2025, it held around $1.5 million in assets under management, with a net asset value per share of $9.42 and a 2.5% management fee. By converting this trust into an ETF, Grayscale aims to make AVAX investment more accessible to a broader audience, including retail investors who may not meet the trust’s accreditation requirements.

The push for a spot Avalanche ETF aligns with the growing interest in altcoin-based investment products. Institutional demand for exposure to cryptocurrencies beyond Bitcoin and Ethereum is increasing, and Grayscale’s move follows a similar filing from VanEck, another firm looking to launch an AVAX-based ETF. If the SEC grants approval, this could pave the way for a new wave of altcoin ETFs, providing investors with diversified access to the crypto market.

However, regulatory uncertainty remains a major hurdle. The SEC has yet to approve any spot altcoin ETFs outside of Ethereum-based products, making the outcome of this filing highly significant. The industry will be watching closely as the SEC reviews Grayscale’s application, as its decision could shape the future of regulated altcoin investment vehicles in the U.S.