- Grayscale filed an S-1 to convert its Avalanche Trust into a spot AVAX ETF, aiming to list on Nasdaq.
- Coinbase Custody is named as AVAX custodian and BNY Mellon as administrator and transfer agent.
- Nasdaq submitted a 19b-4 in March 2025 to support listing; no offering occurs without SEC approval.
- VanEck also filed an AVAX ETF application, while analysts see higher odds of approvals this year.
Grayscale Investments has filed a Form S-1 with the U.S. SEC to transform its private Avalanche vehicle into a spot exchange-traded fund, opening a route for investors to gain AVAX exposure through traditional brokerage platforms.
The proposed fund would trade on Nasdaq under a structure designed to reflect AVAX’s market price, with Coinbase Custody safeguarding the tokens and BNY Mellon serving as the fund’s administrator and transfer agent.
What Grayscale filed and how the fund would work
Grayscale’s S-1 seeks to convert the existing Avalanche Trust into a publicly listed ETF offering direct spot exposure to AVAX via exchange-traded shares. The structure is intended to mirror the underlying AVAX pricing while operating within familiar ETF mechanics, including cash-based creations and redemptions managed by authorized participants.
The operational setup names Coinbase Custody as the AVAX custodian and BNY Mellon as administrator and transfer agent, with Coinbase Inc. also referenced for additional service roles such as trade execution. The arrangement echoes the framework used across several of Grayscale’s single-asset products.
Shares would provide regulated access to AVAX through standard brokerage accounts, aiming to reduce the friction of self-custody while maintaining institutional-grade safekeeping and fund administration.
Timeline and prior milestones
Grayscale introduced the Avalanche Trust in August 2024 as a private placement focused on AVAX, laying the groundwork for a potential public listing once regulatory approvals are secured.
In March 2025, Nasdaq submitted a Rule 19b-4 proposal seeking permission to list the AVAX-focused ETF, signaling listing-level readiness pending the SEC’s review and effectiveness of the registration statement.
Upon effectiveness and listing, the sponsor intends to rename the product “Grayscale AVAX Trust ETF”, as described in the filing. The company also notes that no offering will occur until the required approvals are obtained or deemed unnecessary.
The trust remains relatively small ahead of a potential uplisting, with under $15 million in assets and a reported NAV per share around $12.20, reflecting broader market softness since late 2024.
The competitive landscape and regulatory outlook
Grayscale is not alone in pursuing an Avalanche ETF. Asset manager VanEck filed for a spot AVAX product in March 2025, with the SEC subsequently extending its review period in June, a common step for new crypto ETF proposals.
Regulators have signaled a more structured, “merit‑neutral” approach to crypto ETF reviews, and several non-Bitcoin, non-Ethereum filings have advanced procedurally even as some launch timelines were paused. Market watchers expect additional decisions in grouped windows later this year.
Bloomberg’s James Seyffart recently assigned high odds to Avalanche ETF approvals within the year, while emphasizing that timelines remain at the SEC’s discretion and outcomes aren’t guaranteed.
Why Avalanche is in focus
Avalanche is a proof‑of‑stake layer‑1 launched in 2020 that emphasizes scalability via application‑specific “subnets,” providing flexibility for developers while retaining interoperability with the main network. The protocol is developed by Ava Labs, co‑founded by Cornell professor Emin Gün Sirer.
By market size, AVAX sits among the top crypto assets: CoinGecko places Avalanche near the 22nd spot with a market capitalization around $10 billion, while DefiLlama data shows roughly $2 billion in total value locked across DeFi applications on the network.
Institutional and enterprise interest has grown, highlighted by initiatives such as Anthony Scaramucci’s SkyBridge Capital planning a $300 million tokenization project on Avalanche and the selection of the network among those supporting Wyoming’s Frontier Stable Token (FRNT).
Price action has softened despite periodic rallies. AVAX has been trading in the mid‑$20s, down roughly 35% year‑to‑date, after touching about $54 in December 2024; it remains well below its 2021 all‑time high near $155.
What approval could mean for investors
A spot AVAX ETF could broaden access and deepen liquidity by enabling direct exposure through brokerage accounts, potentially tightening spreads and improving price discovery while offering institutional‑grade custody and administration.
Key hurdles remain: the SEC continues to scrutinize market integrity, custody, and liquidity for non‑BTC/ETH products. Any listing depends on both the 19b‑4 approval and the S‑1 becoming effective, and timelines can shift as the agency weighs market data and public comments.
If approved, the Grayscale AVAX product would be among the first U.S. spot ETFs for a smart‑contract chain beyond the crypto majors, arriving alongside competing bids like VanEck’s and potentially reshaping how traditional portfolios allocate to layer‑1 ecosystems.
Taken together, Grayscale’s S‑1, Nasdaq’s 19b‑4, and parallel industry filings point to a maturing market structure around AVAX. With Coinbase Custody and BNY Mellon in key roles and Avalanche’s growing on‑chain activity in the background, the industry is watching to see whether regulators clear the way for a new category of spot ETFs.
