Nasdaq has submitted a proposal to the SEC to list Grayscale Avalanche Trust (AVAX) as a spot crypto ETF, potentially expanding access to crypto assets on public markets.
Nasdaq's Listing Proposal
Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to list Grayscale Avalanche Trust (AVAX). The proposal involves converting the existing AVAX trust into a spot ETF, offering ETF pricing mechanics.
Benefits of ETF Conversion
Conversion to an ETF would allow the use of pricing mechanics like arbitrage to align the fund's price with asset value. The trust currently manages $1.76 million in assets, each share representing 0.49 AVAX, and trades at a 7.4% premium to its net asset value.
Grayscale's Current Strategy
Grayscale is actively working to convert multiple trusts into ETFs, including Bitcoin and Ether products. The latest move for Avalanche adds to a growing list of tokens Grayscale aims to bring into the ETF space.
If approved, the AVAX ETF could mark another step towards broader institutional access to crypto assets and test regulators’ comfort level with altcoin-based products.
