Grayscale Files with the SEC to Launch an Avalanche Spot ETF

Grayscale seeks approval to launch yet another crypto ETF, with Nasdaq filing an 19b-4 for an Avalanche ETF

Nasdaq has filed a 19b-4 with the SEC to list and trade an Avalanche ETF, providing traditional investors with an accessible way to gain exposure to AVAX.

* The New York-based stock exchange is filing a 19b-4 application with the SEC to list and trade an Avalanche (AVAX) spot exchange-traded fund (ETF).

* The filing, submitted on Friday, seeks a rule change to offer alternative exposure to the native token of the Avalanche ecosystem.

* The application is being made on behalf of Grayscale, the titan asset manager already offers clients exposure to AVAX through its trust.

* Launched last August, the Grayscale Avalanche Trust offers a closed-end exposure to the cryptocurrency with an expense rate of 2.50% and has so far accumulated $1.7 million.

* However, Grayscale is seeking to convert the trust to a spot ETF that will track the AVAX token. If approved, the fund will provide a more flexible and cost-effective way for traditional investors to own the cryptocurrency indirectly.

* According to the filing, Coinbase (NASDAQ:COIN) will be the crypto custodian, while BNY Mellon (NYSE:BNY), the largest custodian bank in the world, will act as the administrator and transfer agent.

* Moreover, CoinDesk Indices will provide an index for the ETF.

* Meanwhile, the bullish development could not sway the prevalent bearishness in the AVAX token, which is following the broader market downtrend.

* At the time of writing, the 14th largest cryptocurrency on CoinMarketCap is changing hands at $20.2, plunging a whopping 8% in the last 24 hours.

* Interestingly, this development comes two weeks after asset manager VanEck submitted an S-1 filing with the U.S. Securities and Exchange Commission (SEC) for the VanEck Avalanche ETF.

* Notably, the firm registered the investment product in Delaware on March 10.

* Grayscale also recently filed for a Cardano spot ETF, its first standalone financial product tracking ADA.

* This adds to its growing list of altcoin investment product applications with the SEC, having filed for XRP, Solana, Dogecoin, and Polkadot ETFs.

* Nonetheless, the securities watchdog has yet to approve any altcoin ETF other than Ethereum’s.

* Notably, the agency has only sanctioned two crypto spot ETFs: the Bitcoin and Ether spot exchange-traded funds.