Grayscale Investments is making strides towards introducing a spot Avalanche exchange-traded fund (ETF) product to the market. Nasdaq recently filed an application to list and trade the Grayscale Avalanche Trust shares as an ETF with the US Securities and Exchange Commission (SEC) on March 27.
Despite this ETF filing, AVAX’s price has seen a decline of more than 7% in the last 24 hours, currently sitting at $20 according to CryptoSlate’s data.
The goal of the Avalanche ETF, as outlined in the filing, is to mirror the market value of AVAX, the native token of the Avalanche blockchain, based on a benchmark index. While investors won’t be able to directly hold AVAX through this product, the ETF offers a convenient way to gain exposure to the asset with lower costs and fewer technical barriers compared to self-custody or using crypto exchanges.
The fund will have CSC Delaware Trust Company as the trustee, Coinbase Custody Trust Company for custodial services, BNY Mellon for administration and transfer agent duties, and Foreside Fund Services for marketing. CoinDesk Indices, Inc. will provide the benchmark index to track AVAX’s price.
There is speculation that the ETF could potentially transform Grayscale’s existing Avalanche Trust into a publicly traded product. The trust currently manages around $1.7 million in assets and carries a 2.5% annual fee.
Grayscale is not the only firm exploring AVAX ETFs, as asset manager VanEck also filed paperwork with the SEC for a similar product earlier this month, indicating a growing institutional interest in Avalanche.
Emin Gün Sirer, founder and CEO of Ava Labs, expressed enthusiasm for the increasing focus on AVAX ETFs, noting that these products offer a new way for investors to engage with advanced blockchain infrastructure without requiring deep technical knowledge.
As the interest in AVAX ETFs grows, it highlights the potential for further adoption and integration of blockchain technology into traditional financial markets. With institutions exploring these products, it could pave the way for broader acceptance and utilization of cryptocurrencies in the investment landscape.