Grayscale Investments has filed with the U.S. Securities and Exchange Commission to convert its Avalanche Trust into a publicly traded ETF on Nasdaq.
Grayscale's Avalanche ETF Plan
Grayscale plans to establish an ETF that will track the price of AVAX. The asset manager clarified that the fund will not employ leverage, derivatives, or complex trading strategies. Instead, it will remain a passive vehicle focused on price tracking. If staking is approved, up to 85% of AVAX will be staked. Staking rewards, if earned, would be reflected in the fund.
Grayscale's Expansion Beyond Bitcoin and Ethereum
This filing is part of Grayscale's broader strategy to expand its product offerings. The company manages two of the largest Bitcoin ETFs worth a total of $25 billion and the second-largest Ethereum fund with over $5 billion in assets. Grayscale is also steadily expanding its ETF pipeline, having filed for a Grayscale Dogecoin Trust as an ETF.
Market Reactions to Grayscale's Avalanche ETF
Grayscale's ETF filing comes at a time of mixed sentiment in the crypto market. Currently, AVAX is trading at $24.21, down nearly 4%, with a market cap of $10 billion. Experts note that this move signals growing institutional interest in crypto assets, along with increasing support from the current U.S. administration.
Grayscale's filing for the Avalanche ETF marks a significant step in expanding investment opportunities in digital assets and signals heightened interest from institutional investors in this asset class.
