Grayscale Seeks to Convert Avalanche Investment Trust Into a Spot Exchange-Traded Fund

Grayscale Files to Convert Avalanche Trust Into Spot ETF

Grayscale has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) as part of its plan to convert the Avalanche (AVAX) Trust into a spot exchange-traded fund (ETF).

If approved, the ETF would trade on Nasdaq, giving traditional investors streamlined, regulated access to AVAX. The fund would support cash creations and redemptions via authorized participants. Coinbase is set to provide prime brokerage services, including custody and trade execution, while BNY Mellon will serve as administrator and transfer agent.

This filing represents the second regulatory step in the process, following Grayscale’s 19b-4 submission in March.

Grayscale launched the Avalanche Trust in August 2024, expanding its footprint in altcoin-based investment vehicles. The trust currently holds just under $15 million in assets, with net asset value per share down to 12.20% from a December high of 27%, reflecting broader crypto market declines and AVAX’s drop in price.

Avalanche is a proof-of-stake Layer 1 blockchain that allows developers to build scalable, application-specific subnets within a unified ecosystem. Recent institutional interest has surged, with Visa integrating Avalanche into its stablecoin settlement network and launching the Avalanche Visa Card for spending AVAX and stablecoins like USDC.

Despite these developments, AVAX is down 9% over the past year and trading 55% below its $54.11 all-time high.

Grayscale joins a growing list of issuers—such as VanEck—pursuing AVAX-based ETFs as investors begin seeking exposure to smart contract platforms beyond Bitcoin and Ethereum. If approved, it would be one of the first U.S.-listed spot ETFs focused on a blockchain outside the top two, potentially reshaping how institutional capital approaches the digital asset sector.