Grayscale Avalanche ETF: Filing Signals Expanding Altcoin Push

Grayscale Investments has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) seeking approval to convert its Avalanche (AVAX) Trust into a publicly traded spot ETF. The Grayscale Avalanche ETF would trade on Nasdaq under the ticker AVAX, giving traditional investors regulated exposure to the Avalanche blockchain’s native token.

Grayscale’s Altcoin ETF Expansion

The Grayscale Avalanche ETF filing is part of a wider effort to expand beyond Bitcoin and Ethereum. Earlier in 2025, the firm also applied for spot ETFs for XRP and Dogecoin, signaling a push to capture institutional demand for altcoin exposure.

The Avalanche Trust currently manages just under $15 million in assets. Its net asset value per share has fallen from 27% in December to around 12%, reflecting AVAX’s market decline.

Institutional Momentum on Avalanche

Avalanche, developed by Ava Labs and launched in September 2020, is a proof-of-stake Layer 1 blockchain that enables customizable subnets for decentralized apps. Institutional use has gained traction recently:

• Visa integrated Avalanche into its stablecoin settlement system.
• The Avalanche Visa Card launched, enabling AVAX and USDC spending.
• SkyBridge Capital committed $300 million to tokenization projects on Avalanche.
• Wyoming’s Frontier Stable Token (FRNT) chose Avalanche, Ethereum, and Solana for deployment.

These developments highlight why the Grayscale Avalanche ETF could appeal to institutions looking at tokenization and real-world finance adoption.

Market Context for AVAX

Despite institutional growth, AVAX has lagged in performance:

• AVAX trades at $24.25–$24.52, down 35% year-to-date.
• It is 55% below its December 2024 high of $54.11.
• Meanwhile, Bitcoin and Ethereum have gained roughly 70% in the same period.
• Avalanche currently ranks 22nd by market cap at $10.2 billion (CoinGecko).

Competitive ETF Race

The Grayscale Avalanche ETF faces competition. VanEck filed its own AVAX ETF in March 2025, marking the start of a race to launch the first U.S.-listed ETF tied to a smart contract blockchain outside BTC and ETH.

If approved, the product could signal Wall Street’s readiness to expand beyond Bitcoin and Ethereum, potentially making Avalanche a benchmark for future altcoin ETFs.