Grayscale Files with the SEC to List Its Avalanche (AVAX) Trust on Nasdaq

This move marks a crucial development in the expansion of cryptocurrency-based exchange-traded products (ETPs).

Prominent crypto investment firm Grayscale has submitted a proposal to list Grayscale Avalanche Trust (AVAX) on the Nasdaq exchange, according to a recent SEC filing. This move marks a significant step in the expansion of cryptocurrency-based exchange-traded products (ETPs).

Nasdaq formally seeks approval to list shares of the Grayscale Avalanche Trust (AVAX), aiming to introduce a spot exchange-traded fund (ETF) linked to the price of the Avalanche network's token, AVAX. The proposal, outlined in a 109-page document under SEC Form 19b-4, plans to trade the fund on Nasdaq Rule 5711(d) for commodity-based trust shares.

The proposed ETF is designed to directly hold AVAX, with custody managed by Coinbase Custody Trust Company. The trust's net asset value (NAV) will be calculated daily based on an index price from regulated crypto exchanges (Kraken, Bitstamp, Crypto.com) weighted by trading volume and screened for irregularities. Grayscale highlights various security measures against manipulation, including geographically dispersed private-key storage and real-time trade monitoring.

The filing mentions the recent approvals of spot bitcoin (BTC) and ethereum (ETH) ETFs, highlighting Nasdaq's surveillance-sharing agreement with Coinbase Derivatives (offering AVAX futures) as a key factor. It underscores the effective monitoring facilitated by the correlation between AVAX spot and futures markets, echoing arguments in previous crypto ETF approvals.

This ETF, pending approval from the SEC within the 45-90 day evaluation window, would be the first spot product for AVAX on a major U.S. exchange, boosting institutional access to the token with an $8.4 billion market capitalization. Grayscale's growing crypto ETP portfolio, including the Bitcoin Trust, showcases its commitment to expanding offerings in the digital asset space.