Nasdaq has submitted a 19b-4 form to the U.S. Securities and Exchange Commission seeking approval to list and trade shares of Grayscale’s proposed spot Avalanche exchange-traded fund.
If granted, the ETF would directly hold AVAX (AVAX), providing investors with access to the native token of the Avalanche network via regular brokerage accounts.
This initiative by Grayscale comes just a week after VanEck filed an S-1 registration statement for its competing Avalanche ETF.
The application reflects a rising institutional interest in regulated investment options for altcoins, even though the SEC has yet to approve any spot crypto ETFs apart from those for Bitcoin (BTC) and Ethereum (ETH).
The proposed ETF aims to convert Grayscale’s existing Avalanche Trust, which was initially launched as a private placement in August 2024, into a spot ETF. According to the application, Coinbase Custody will take on the role of the fund’s custodian, while BNY Mellon is expected to function as the administrator and transfer agent.
Avalanche operates as a Layer 1 blockchain recognized for its high throughput and scalability. The AVAX token is utilized for transactions, staking, and governance purposes.
In the last 24 hours, the token has experienced a decline of over 7% amid a broader market downturn, now trading around $20.20.
Grayscale’s filing follows its recent efforts to establish a Cardano (ADA) ETF, highlighting a wider ambition to introduce more altcoins to the regulated ETF landscape.
The SEC’s forthcoming decision on these applications could influence the future of crypto ETFs beyond just Bitcoin and Ethereum.