Grayscale Investments has filed with the United States Securities and Exchange Commission (SEC) for approval to launch a spot Avalanche (AVAX) exchange-traded fund (ETF). The move highlights the digital asset manager’s determination to expand its crypto investment products as institutional and retail demand for regulated cryptocurrency exposure continues to grow.

Filing to Convert Avalanche Trust into ETF

According to a registration statement released on Monday, Grayscale filed with the SEC on Friday to convert its existing Avalanche Trust into a publicly traded ETF. The trust, which was first introduced in August 2024, was created to provide institutional investors with structured access to AVAX.

If granted approval, the new ETF will trade under the ticker AVAX, matching the symbol of Avalanche’s native token. The product is designed to give investors direct exposure to the cryptocurrency through conventional brokerage accounts, avoiding the need for digital wallets, private keys or direct asset management.

Custody and Administration Partners

Grayscale has partnered with established financial institutions to oversee the fund. Coinbase Custody has been appointed to hold AVAX on behalf of investors, ensuring secure storage of the underlying assets. Meanwhile, BNY Mellon is expected to serve as the fund’s administrator and transfer agent, responsible for regulatory compliance, record-keeping and shareholder services.

These arrangements mirror the structure used by other spot crypto ETFs recently approved in the United States, reflecting Grayscale’s effort to align with regulatory expectations and investor safeguards.

Nasdaq Push for Listing

The SEC filing follows a separate application by Nasdaq in March 2025, when the exchange sought permission to list the AVAX ETF. In its latest submission, Grayscale confirmed that, once effective, the Avalanche Trust will be renamed the Grayscale AVAX Trust ETF.

Nasdaq’s involvement is seen as a significant step for the potential fund, offering the possibility of a high-profile listing on one of the world’s leading stock exchanges. If approved, the ETF could become one of the first major exchange-traded products dedicated to Avalanche, providing broader exposure to the blockchain network.

Expansion Beyond Bitcoin and Ethereum

Grayscale’s new filing is part of a broader strategy to diversify its portfolio of crypto ETFs. While the company is best known for its Grayscale Bitcoin Trust, it has in recent months sought to extend coverage to other digital assets.

Earlier this year, Grayscale lodged applications for spot ETFs linked to XRP and Dogecoin. These filings illustrate the firm’s belief that investor appetite extends beyond Bitcoin and Ethereum, which until recently dominated the crypto ETF space.

By targeting Avalanche, a blockchain platform known for its fast transaction speeds and growing decentralised finance ecosystem, Grayscale is seeking to capture interest in alternative networks that support a wide range of applications.

Growing Demand for Regulated Crypto Products

The filing comes amid growing investor demand for regulated and transparent crypto investment vehicles. The SEC’s earlier approval of spot Bitcoin ETFs was seen as a watershed moment for the industry, prompting fund managers to expand their offerings.

Analysts suggest that, if successful, a spot AVAX ETF could improve liquidity for the cryptocurrency and drive mainstream adoption. It would also offer investors a regulated route to gain exposure to Avalanche without facing the complexities of direct trading on crypto exchanges.

Regulatory Challenges Remain

Despite increasing acceptance, regulatory hurdles continue to shape the market. The SEC has historically been cautious about approving spot crypto ETFs, citing concerns around market manipulation and investor protection.

However, the agency’s gradual approval of products beyond Bitcoin has encouraged asset managers to test the waters with new filings. Grayscale, which has long fought for broader ETF recognition, is positioning itself as a leader in this transition.

Looking Ahead

The outcome of Grayscale’s application will be closely watched by both the investment community and the wider crypto industry. Should the SEC grant approval, the Grayscale AVAX Trust ETF could provide an important precedent for additional altcoin-based ETFs in the future.

For investors, the fund represents a chance to access Avalanche through a familiar, regulated structure. For Grayscale, it is another step in expanding its presence beyond Bitcoin and Ethereum, while strengthening its role as a pioneer in digital asset investment products.