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- Nasdaq files for SEC approval to launch Grayscale’s Avalanche Spot ETF tracking AVAX.
- Grayscale’s Avalanche Trust manages $1.76M in assets, with shares trading at a 7.4% premium.
- Approval of Avalanche ETF could boost institutional crypto investments in regulated markets.
Nasdaq filed with the U.S. Securities and Exchange Commission (SEC) on March 27, 2025 to get approval for listing Grayscale Investments’ spot Avalanche exchange-traded fund (ETF). Grayscale’s Avalanche Trust (AVAX) from August 2024, will transform into a tracking ETF that monitors Avalanche’s native token AVAX.
The growing popularity of financial institutions to provide crypto investment products with regulatory oversight drives this particular move. The SEC must perform a review and make a decision on the application through a process lasting 45 to 90 days, which will influence the future development of altcoin ETFs in the United States.
Grayscale’s current Avalanche Trust manages $1.76 million in assets, with a net asset value per share of $10.86 as of March 28, 2025. Each share represents roughly 0.49 AVAX, trading at a 7.4% premium over the token’s market price of $20.50, according to CoinMarketCap.
If approved, the ETF will use Coinbase Custody to secure its holdings and rely on an index from CoinDesk Indices for daily pricing. Nasdaq argues that its surveillance-sharing agreement with Coinbase Derivatives, which trades AVAX futures, ensures market integrity.
Grayscale Expands Crypto Investment Options
Grayscale manages 28 crypto products, including 25 single-asset funds and three diversified offerings. The firm has already converted its Bitcoin and Ethereum trusts into spot ETFs, a strategy it now applies to Avalanche. The company highlights that ETFs allow tighter price tracking through an arbitrage mechanism, benefiting investors. This filing aligns with Grayscale’s broader push to expand its ETF lineup, which includes pending applications for Cardano and XRP products.
The Avalanche ETF proposal follows a similar filing by VanEck earlier in March 2025, signaling rising interest in Avalanche-based investment vehicles. Grayscale’s existing trust carries a 2.5% management fee, but the ETF could lower costs and improve accessibility for traditional investors. The firm’s Bitcoin Mini Trust and Ether Mini Trust, launched in 2024 with fees as low as 0.15%, reflect its focus on competitive pricing amid market demand for cost-effective options.
Regulatory Context and Market Implications
The SEC’s prior approvals of Bitcoin and Ethereum spot ETFs set a precedent for Nasdaq’s filing. The exchange contends that Avalanche’s proof-of-stake system and futures market correlation provide safeguards against manipulation. With AVAX’s market cap at $8.4 billion, approval could open doors for institutional investors via conventional brokerage accounts. However, the SEC has not yet approved spot ETFs for altcoins beyond Ethereum.
Crypto markets faced a downturn this week, with AVAX dropping 6.6% in 24 hours to $20.50 as of March 29, 2025. The broader CoinDesk 20 Index fell over 4%, reflecting wider volatility. Approval of Grayscale’s ETF could signal a shift in regulatory stance under the Trump administration, potentially boosting altcoin adoption in regulated markets.