Grayscale is pushing ahead with a spot Avalanche ETF in partnership with Nasdaq
Grayscale is applying to list a spot Avalanche ETF in partnership with Nasdaq, but the network's native token isn't impressed. Despite the news, ADA dropped 8.6% to $20.50.
This is surprising as Nasdaq filed a 19b-4 form with the U.S. Securities and Exchange Commission on March 28 to list the fund. If approved, it would let everyday investors buy AVAX via typical brokerage accounts.
The ETF will invest in units of the Grayscale Avalanche Trust, which in turn holds Avalanche tokens. This offers a cheaper and more flexible way to invest compared to the existing trust, which carries a 2.5% management fee.
Coinbase (NASDAQ:COIN) Custody will serve as the fund's custodian, the filing disclosed.
The move continues the trend of firms seeking to list altcoin ETFs. While the SEC has approved futures ETFs for Bitcoin (BTC-USD) and Ether (ETH-USD), the agency is yet to greenlight any spot crypto ETFs or approve an altcoin ETF.
Earlier this month, VanEck filed for an Avalanche ETF, while Grayscale also applied for a Cardano ETF last month.
When, however, VanEck applied for its AVAX ETF, the token plummeted 55%.
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