Grayscale Moves to Launch Spot Avalanche ETF on Nasdaq

Grayscale Targets Altcoin Expansion With Proposed Spot Avalanche ETF

Grayscale has moved to broaden its ETF lineup with a proposed spot Avalanche (AVAX) exchange-traded fund, as Nasdaq submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for its listing.

The fund would give traditional investors direct exposure to AVAX via brokerage accounts, offering a streamlined alternative to crypto-native platforms. Coinbase Custody would act as custodian, ensuring regulated storage and security of assets.

Currently, Grayscale offers access to Avalanche through its AVAX Trust, which carries a 2.5% management fee. A spot ETF would likely come with lower costs and better liquidity, reinforcing the trend of institutional products expanding beyond bitcoin and ether.

However, approval remains uncertain. While the SEC has begun to embrace spot bitcoin ETFs and is reviewing ether ETF proposals, no altcoin-based spot ETF has been greenlit to date.

The move follows similar filings from asset manager VanEck, which submitted an S-1 for its own AVAX ETF earlier this month. Grayscale also filed for a Cardano (ADA) ETF in February, signaling its growing push to cover more of the altcoin market with regulated products.

At the time of the filing, AVAX was trading at $20.50, reflecting a 6.6% decline over 24 hours amid a wider market pullback that saw the CoinDesk 20 Index fall over 4%.

As institutional interest in altcoins grows, Grayscale’s latest ETF proposal could mark a pivotal step in the evolution of crypto investment vehicles—if regulators are ready to take that next step.

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