- The spot ETF will offer investors direct exposure to Avalanche (AVAX) through brokerage accounts.
- ETF approval could trigger institutional inflows, driving altcoin price surges and broader crypto adoption.
Grayscale Investment has submitted an S-1 registration with the U.S Securities and Exchange Commission (SEC), a filing reveals. The initiative aims to convert the platform’s Avalanche Trust into a publicly traded spot Exchange-Traded Fund (ETF) under the AVAX ticker.
If approved, the ETF will give investors direct exposure to AVAX through standard brokerage accounts. The Coinbase custody would act as a custodian, while the BNY Mellon manages administration and transfers.
However, the trust is not expected to launch until the SEC approves its 19b-4 application, which is projected to take up to 240 days.
“The Trust will not seek effectiveness of this registration statement and no offering of Shares hereunder will take place unless and until such approval is obtained, or it is determined by the Trust that such approval is no longer necessary,” the document reads.
Grayscale is also in pursuit of ETFs tied to Solana and XRP, while other proposals, such as the Dogecoin ETF, await a similar dual approval process. Once approved, these products could mark a significant progress in U.S spot crypto ETFs.
See Related: VanEck Files For Spot Avalanche ETF As Institutional Interest Grows
Growing Altcoin ETF Filings
Altcoin ETF filings are accelerating as institutional demand grows for regulated crypto exposure. NASDAQ is among the institutions seeking approvals, after filing to list its own Avalanche product in March 2025.
Grayscale launched its Avalanche Trust in August 2024 and seeks to name it Grayscale AVAX Trust ETF once the registration is finalized. Meanwhile, the firm, together with mutual fund manager VanEck, updated their Solana ETF applications recently, in expectation of final SEC approval.
Eric Balchunas, a Senior ETF Analyst at Bloomberg Intelligence, says if the SEC approved more crypto ETFs, it could trigger a surge in institutional inflows. He notes that the ETFs provide a regulated and familiar investment vehicle for investors. These moves underscore investors’ growing appetite, which could boost altcoin liquidity, adoption, and legitimacy within mainstream financial markets.
