 
 
Asset management giant Grayscale has filed a proposal with the U.S. Securities and Exchange Commission to convert its Grayscale Avalanche Trust into a publicly traded spot exchange-traded fund listed on Nasdaq.
The move seeks to improve investor access to Avalanche (AVAX) by allowing shares of the trust to trade as an ETF on a regulated exchange, according to an S-1 registration statement submitted Friday.
“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 wrote in the filing.
The fund would allow creations and redemptions in cash through authorized participants. Coinbase would provide the prime brokerage services, including AVAX custody and trade execution. BNY Mellon would act as the administrator and transfer agent.
Grayscale said the Avalanche trust will remain a passive vehicle designed to mirror the price of AVAX, while also reflecting any AVAX earned through staking, if certain conditions are satisfied and staking is enforced.
 
Grayscale debuted its Avalanche Trust in August 2024 as part of a wider expansion into altcoin-focused investment vehicles. The fund currently manages around $15 million in assets.
The move marks the second regulatory step in the conversion process, following Grayscale’s initial 19b-4 filing in late March. A spot AVAX ETF would allow institutional and retail investors to gain exposure to Solana without requiring them to hold the token themselves.
AVAX is trading 7.96% lower on the day to $23.67, CoinGecko data shows. Unlike major crypto assets such as Bitcoin and Ether — which have registered new all-time highs in 2025 — Avalanche remains 83.7% down from its November 2021 peak of $144.96.
Grayscale’s Growing ETF Ambitions
Grayscale currently manages two of the largest spot BTC ETFs with $25 billion in cumulative assets. The firm also successfully converted its Ethereum (ETH) Trust into a spot ETH ETF, cementing its reputation for navigating regulatory hurdles.
Grayscale is also bidding to introduce funds for assets like Solana (SOL), Cardano’s ADA, and Litecoin (LTC), and has pushed the U.S. Securities and Exchange Commission for permission to launch its multi-asset crypto fund.
Several other issuers are also vying to expand their suite of crypto investment products, especially as President Donald Trump’s pro-crypto government establishes more lenient regulations for the industry.
VanEck has also submitted paperwork for an AVAX ETF, betting that investors are exploring beyond BTC and ETH for exchange-traded fund exposure.
Source: https://zycrypto.com/grayscale-seeks-sec-approval-to-convert-its-avalanche-trust-into-spot-avax-etf/
