Grayscale has officially filed with the SEC to convert its Avalanche Trust into a spot ETF, potentially reshaping altcoin investment vehicles.
Avalanche ETF Could Broaden Institutional Crypto Access
If approved, Grayscale’s Avalanche Trust—originally launched in August 2024—would be transformed into a spot ETF, allowing it to be traded publicly on Nasdaq. This would make Avalanche (AVAX) the third digital asset in Grayscale’s ETF portfolio, following Bitcoin and Ethereum. The move reflects growing institutional appetite for regulated exposure to altcoins. While the SEC has already greenlit spot ETFs for Bitcoin and Ethereum, it has yet to approve any altcoin ETF proposals.
Regulatory Landscape Could Shift Post-Election
Market watchers also note that recent political shifts may play a role. With Donald Trump reemerging as a potential frontrunner in the U.S. presidential race, expectations are rising that crypto regulation may soften. This broader political backdrop adds weight to Grayscale’s timing and could influence how the SEC approaches altcoin ETFs moving forward.
Market Reaction Remains Bearish Despite ETF Buzz
Despite the news, AVAX has fallen by 8.47% in the past 24 hours and is currently trading around $20.26. The decline mirrors the broader crypto market downturn, with Bitcoin dropping below $85,000, triggering pullbacks across most altcoins. Still, the filing has created a buzz in the crypto community. If successful, Grayscale’s Avalanche ETF could pave the way for future listings and provide much-needed legitimacy for alternative digital assets.
Grayscale's filing could open new doors for publishing and legitimizing altcoins. While the market reaction is mixed, the SEC’s next steps will be closely watched.
