A deep dive into Bitwise's Avalanche ETF proposal, the SEC's stance, and the broader implications for AVAX and crypto ETFs.
Bitwise, Avalanche ETF, and the SEC: What's the Holdup?
The race for the first Avalanche (AVAX) ETF is heating up! Bitwise, along with VanEck and Grayscale, is vying for SEC approval, signaling a growing institutional interest in AVAX. But will the SEC give the green light?
The Avalanche ETF Rush
Bitwise threw its hat into the ring, joining VanEck and Grayscale in the quest for an Avalanche ETF. This move underscores a significant trend: increased institutional interest in providing regulated access to AVAX. Bitwise proposes a spot ETF, holding actual AVAX tokens with Coinbase Custody handling the custody. The ticker symbol is yet to be revealed, but the net asset value will track the CME CF Avalanche–Dollar Reference Rate.
Grayscale, not to be left out, wants to convert its existing Avalanche Trust into a spot AVAX ETF. Their proposal involves listing on Nasdaq, with Coinbase Custody as custodian and BNY Mellon as administrator.
SEC's Stance: A Waiting Game
The SEC is taking its time. While Grayscale filed back in August 2025, the SEC initially extended its review period to July 15, 2025, without a final decision. This cautious approach isn't surprising, given the SEC's general hesitancy towards crypto ETFs beyond Bitcoin and Ethereum.
Why an Avalanche ETF Matters
An approved Avalanche ETF could be a game-changer for AVAX. It would provide easier access for both retail and institutional investors who prefer the safety and convenience of traditional brokerage accounts. No more dealing with wallets and private keys! This increased accessibility could drive liquidity and boost Avalanche's visibility in the market.
Bitwise's Other ETF Endeavors: Dogecoin in the Spotlight
Interestingly, Bitwise isn't just focused on Avalanche. They're also in the running for a Dogecoin ETF. The SEC has set a decision date of November 12, 2025, for NYSE Arca’s plan to list the Bitwise Dogecoin ETF. This shows Bitwise's commitment to offering diverse crypto investment options.
My Two Satoshis
While the SEC's approval is never guaranteed, the growing number of applications for AVAX and other crypto ETFs suggests a shift in the regulatory landscape. The SEC may be warming up to the idea of offering investors more regulated pathways to access the crypto market. The key will be demonstrating robust custody solutions and investor protection measures. For example, Coinbase Custody, regulated under New York banking law, will safeguard tokens in segregated accounts with cold storage protection.
The Bottom Line
The race for an Avalanche ETF is on, and Bitwise is a key player. Keep an eye on the SEC's decisions in the coming months. Whether it's AVAX, DOGE, or another crypto asset, the ETF landscape is about to get a whole lot more interesting. In the meantime, HODL on tight and enjoy the ride!
