Grayscale, a leading digital asset management company, has set its sights on launching an Avalanche (AVAX) exchange-traded fund (ETF) in the United States. This move comes as part of the company’s efforts to expand its offerings and provide investors with more opportunities to gain exposure to different digital assets.
The proposal for the Grayscale Avalanche Trust ETF was recently submitted to the U.S. Securities and Exchange Commission (SEC) by the Nasdaq Stock Market. If approved, the ETF would be tied to the price of AVAX, the native asset of the Avalanche blockchain network.
Notably, Grayscale is not the only financial institution looking to launch an Avalanche ETF. VanEck, another major player in the financial sector, has also expressed interest in creating a fund linked to the Ethereum rival.
Should the Grayscale Avalanche Trust ETF receive approval, Coinbase Custody will act as the custodian for the fund. In addition to the AVAX ETF, Grayscale is also exploring the possibility of launching funds tied to other popular cryptocurrencies such as Cardano (ADA), Solana (SOL), XRP, and Hedera (HBAR).
The SEC has recently paved the way for the introduction of Bitcoin (BTC) ETFs, which have seen significant inflows of capital into the market. Ethereum (ETH) ETFs were also approved for trading last year, further expanding the range of investment options available to investors.
Earlier this year, Franklin Templeton and Hashdex jointly launched BTC-ETH ETFs, further demonstrating the growing interest in cryptocurrency-based investment products.
At the time of writing, AVAX is trading at $20.36, with a slight decline of nearly 8% over the past 24 hours. Despite this short-term price movement, the long-term outlook for Avalanche and its associated ETFs remains positive.
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