Grayscale Investments filed an S-1 with the U.S. Securities and Exchange Commission (SEC) on August 22 to convert its existing Avalanche Trust into a publicly traded spot AVAX ETF. The fund is designed to give investors direct exposure to AVAX, Avalanche’s native token, through traditional brokerage accounts.
According to the filling, Coinbase Custody will act as custodian, while BNY Mellon is expected to serve as administrator and transfer agent. The filing follows Nasdaq’s March 2025 request to list AVAX on the exchange.
“In connection with the effectiveness of this registration statement and the listing of the Shares on the Nasdaq stock market, the sponsor intends to rename the Trust as Grayscale AVAX Trust ETF as described in this registration statement,” Grayscale said in the filing.
The proposed ETF mirrors the price of AVAX and any staking rewards if staking is implemented. Grayscale noted that the trust will not use leverage, derivatives, or other strategies, and will remain a passive vehicle.
If staking goes ahead, the provider expects to keep up to 85% of AVAX staked at all times. During staking, no unstaked AVAX or rewards can be moved to another address, the filing said. Creations and redemptions would occur via authorized participants in cash, with Coinbase handling prime brokerage services.
This step is part of Grayscale’s active expansion into spot crypto ETFs beyond Bitcoin and Ethereum. The firm manages two of the largest spot BTC ETFs with $25 billion in cumulative assets and the second-largest Ether fund on Wall Street with over $5 billion.
Earlier this year, it filed for spot XRP and Dogecoin ETFs and is pursuing products covering SOL, ADA, LTC, and a multi-crypto fund. Several other managers, including Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree, recently amended spot XRP ETF filings. Bloomberg Intelligence ETF analyst James Seyffart called the wave of filings “a good sign.”
Grayscale’s corporate plan has advanced this year with founder Barry Silbert returning as chairman and preparations for a potential IPO through confidential SEC filings. At the time of filing, AVAX traded around $24.21 per coin with a $10 billion market cap, according to coinmarketcap.
Also Read: Canary Capital Files Updated S-1 for XRP ETF Approval
