A company focused on cryptocurrency investments is advancing its plans to launch a spot Avalanche exchange-traded fund (ETF) in the market.
On March 27, Nasdaq submitted an application to the US Securities and Exchange Commission (SEC) to list and trade shares of the Avalanche Trust as an ETF.
However, despite this ETF filing, the price of AVAX has fallen by over 7% in the past 24 hours, settling at $20 at the time of reporting, based on available market data.
Avalanche ETF
The application states that the fund aims to replicate the market value of AVAX—the native token associated with the Avalanche blockchain—using a benchmark index.
While the ETF will not permit investors to hold AVAX directly, it offers a convenient method to gain exposure to the asset. Nasdaq emphasized that the ETF intends to provide this access at lower costs and with fewer technical hurdles than methods like self-custody or trading on cryptocurrency exchanges.
The filing mentions that CSC Delaware Trust Company will act as the trustee for the fund, with Coinbase Custody Trust Company managing the custodial services.
Additionally, BNY Mellon is set to handle administration and transfer agent functions, while Foreside Fund Services will oversee marketing efforts. The benchmark index to monitor AVAX’s price will be supplied by CoinDesk Indices, Inc.
This ETF may have the potential to convert the existing Avalanche Trust into a publicly traded entity. Currently, this trust manages approximately $1.7 million in assets and comes with a 2.5% annual fee.
Moreover, the company is not the only one considering AVAX ETFs. Earlier this month, the asset management firm VanEck also filed with the SEC for a similar product, indicating a rising institutional interest in Avalanche.
Emin Gün Sirer, the founder and CEO of Ava Labs, expressed his support for the increasing attention on AVAX ETFs. He noted that these products provide a novel way for investors to engage with advanced blockchain infrastructure without requiring extensive technical expertise.
