Grayscale Investments has filed to convert its Avalanche Trust into a spot ETF, continuing its efforts in the altcoin exchange-traded fund space.
Grayscale's Plans for Avalanche ETF
Grayscale officially filed with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot ETF. This initiative is aimed at expanding its offerings of altcoin-based funds. The Avalanche Trust was first launched in August 2024 as a closed-end fund focusing exclusively on investments in Avalanche (AVAX).
Future Growth of the ETF Portfolio
The company plans to actively expand its ETF portfolio. In the latest S-1 filing dated August 22, 2025, it is noted that the Avalanche Trust will issue and redeem shares in cash. Coinbase will serve as custodian, while BNY Mellon will manage the fund and act as transfer agent. Additionally, Grayscale aims to enhance the income potential of its fund by potentially using up to 85% of its assets for staking, which could provide a competitive advantage.
Rising Competition in the AVAX ETF Market
Grayscale is not alone in its ambition to launch an AVAX-based fund. The financial firm VanEck has also filed for a similar product. Their application also highlights the potential for staking, further indicating the growing interest in AVAX ETFs in the market.
Grayscale's strategy to convert Avalanche Trust into an ETF underscores the increasing interest in altcoins and the establishment of new competitive standards in the market.
