Grayscale Seeks Avalanche ETF Listing on Nasdaq

Nasdaq has submitted a 19b-4 form to the U.S. Securities and Exchange Commission for the purpose of listing and trading Grayscale's proposed Avalanche exchange-traded fund that would operate on a spot basis.

If given the green light, the ETF would invest directly in AVAX (AVAX), granting investors exposure to the native token of the Avalanche network via traditional brokerage accounts.

Grayscale's move takes place a week after VanEck filed an S-1 registration statement to initiate an Avalanche ETF that would compete with Grayscale's offering.

The filing underscores increasing institutional demand for regulated alternative coin investment products, despite the SEC's reluctance to approve spot crypto ETFs beyond Bitcoin (BTC) and Ethereum (ETH).

The submitted form indicates that the proposed ETF would transform Grayscale's existing Avalanche Trust, which was introduced in August 2024 as a private placement, into a spot ETF. According to the filing, Coinbase Custody will act as the fund's custodian, while BNY Mellon will assume the roles of administrator and transfer agent.

Avalanche is a Layer 1 blockchain distinguished for its high throughput and scalability. AVAX, the platform's native token, is utilized for transactions, staking, and governance purposes.

In the past 24 hours, the token has experienced a decline of over 7% due to broader market downturns, with its current trading value hovering around $20.20.

Grayscale's submission follows its recent initiative to create a Cardano (ADA) ETF, highlighting its broader objective of incorporating more alternative coins into the regulated ETF market.

The SEC's ruling on these submissions could establish a precedent for the upcoming wave of crypto ETFs beyond Bitcoin and Ethereum.