TL;DR
- Nasdaq requested SEC approval for an Avalanche (AVAX) ETF managed by Grayscale, converting its trust into a regulated investment product.
- VanEck also filed for an AVAX ETF, reflecting the growing institutional interest in regulated crypto investments.
- AVAX dropped 8% in the last 24 hours, trading above $20, as the crypto market experiences a general decline.
Nasdaq has submitted a request to the U.S. Securities and Exchange Commission (SEC) to list and trade an exchange-traded fund (ETF) based on Avalanche (AVAX), managed by Grayscale. The proposal aims to convert the Grayscale Avalanche Trust, launched in August 2024, into a regulated investment product that allows investors to access AVAX more easily.
Grayscale already provides indirect exposure to Avalanche through its Digital Large Cap Fund (GDLC), a fund composed of multiple cryptocurrencies, including Bitcoin, Ethereum, Solana, and XRP. However, converting its trust into an exclusive AVAX ETF would offer a more direct approach for those looking to invest in this asset.
Why an Avalanche (AVAX) ETF?
Avalanche is a smart contract network that prioritizes scalability, security, and decentralization. Its technology enables the tokenization of real-world assets, a market that has expanded significantly in recent years. Grayscale highlights these qualities as key reasons for structuring an AVAX-based ETF.
However, competition is already emerging, as VanEck has also applied for an AVAX ETF. The interest in these products stems from increasing institutional demand for regulated cryptocurrency investment alternatives. Grayscale, in turn, aims to expand its product offering to include other digital assets such as XRP, Solana, Litecoin, and Polkadot.
Despite the filing, the market is in decline, and Avalanche has not yet benefited. According to CoinMarketCap, AVAX has dropped 8% in the last 24 hours, trading just above $20 per token. Ultimately, the SEC’s review process will determine whether the product receives approval, which could influence Avalanche’s institutional adoption and market performance in the future.
