Grayscale Files to Convert Its Avalanche (AVAX) Trust Into a Spot ETF

Grayscale Investments filed with the U.S. Securities and Exchange Commission (SEC) to convert its existing Avalanche Trust into a spot Avalanche (AVAX) exchange-traded fund (ETF).

Grayscale Investments has taken a step closer to launching a spot Avalanche (AVAX) exchange-traded fund (ETF) after filing with the U.S. Securities and Exchange Commission (SEC). Major exchange Nasdaq also submitted the necessary Form 19b-4 filing on Grayscale’s behalf to list the proposed ETF, pending agency review and approval.

If approved, the spot AVAX ETF will offer institutional and retail investors regulated exposure to Avalanche’s ecosystem directly through traditional brokerage accounts, potentially boosting confidence and liquidity for the AVAX token.

What Is The Grayscale Avalanche Trust Being Converted?

Grayscale launched its private placement Avalanche Trust back in August 2024. According to Grayscale’s website, the Trust currently holds about $1.76 million in assets. Its net asset value (NAV) per share stood at $10.86 recently, reportedly trading at a significant 7.4% premium to its underlying AVAX holdings.

Converting this existing trust structure into an ETF aims to improve liquidity and price tracking for investors holding its shares, mirroring the process Grayscale successfully completed for its Bitcoin Trust earlier.

How Has AVAX Price Performed?

AVAX has been trading above $18 in recent weeks. Analysts argue the token’s ability to hold its key $18 support level this month indicates further imminent upside.

Related: Grayscale Seeks Green Light for Polkadot (DOT) ETF: Crypto Diversification Heats Up

Avalanche is trading at $20.14%, an 8.1% drop in the past day. The price has now dropped by 86.5% from its $150 peak in 2022. However, recent stability suggests a rally toward $30 or even $50 if buying pressure continues.

Meanwhile, technical indicators support this trend. The Relative Strength Index (RSI) is currently at 72, reflecting strong market interest. A bullish crossover in the short-term 5-day and 20-day moving averages further suggests upward momentum.

Maintaining price levels above $20 has strengthened investor confidence, which could push AVAX toward higher resistance levels in the coming weeks.

What Other Institutional Interest Exists in Avalanche?

Notably, institutional investment in AVAX increased significantly in 2025. BlackRock’s BUIDL fund, which operates on Avalanche, has surpassed $50 million in assets under management (AUM). Additionally, Trump’s WorldLibertyFi (WLFi) project has expanded its presence on Avalanche’s C-Chain, aligning with VanEck’s ETF launch.

Related: Avalanche Leadership Shift: Board Exits Hit AVAX as Market Watches Closely

If Grayscale’s ETF gains SEC approval, it could accelerate institutional adoption of AVAX, bringing more liquidity and price stability.

However, the market remains cautious, as regulatory uncertainty could lead to delays or rejections that might impact short-term price action.