Nasdaq has officially submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) for the approval of a Grayscale Avalanche ETF, marking another step in the growing institutional adoption of altcoin-based exchange-traded funds (ETFs).
The filing, made on March 28, 2025, seeks regulatory approval for a spot Avalanche ETF, which would allow investors to gain exposure to AVAX, the native token of the Avalanche blockchain, without directly purchasing or holding the asset.
Grayscale, a leading digital asset manager, has been actively expanding its ETF offerings beyond Bitcoin and Ethereum, with previous filings for XRP, Solana, Litecoin, and Cardano ETFs.
The Grayscale Avalanche Trust, which currently holds $1.7 million in assets under management, is expected to transition into the proposed ETF structure if approved. The ETF would directly hold AVAX and track its market price, providing investors with a regulated and accessible way to invest in the Avalanche ecosystem.
The move comes amid increasing competition among asset managers seeking SEC approval for altcoin ETFs. VanEck, another major investment firm, filed an S-1 form for an Avalanche ETF earlier in March, signaling broader institutional interest in the asset. Other firms, including Canary Capital, Bitwise, Fidelity Investments, and 21Shares, have also submitted applications for various altcoin ETFs, reflecting a growing demand for diversified crypto investment products.
Despite the optimism surrounding the filing, the SEC has yet to approve any altcoin-based spot ETFs, with its focus primarily on Bitcoin and Ethereum ETFs, which were greenlit in January 2024.
Analysts, including Bloomberg’s senior ETF analyst Eric Balchunas, predict that Litecoin, XRP, Solana, and Cardano could be among the first altcoins to receive approval, though Avalanche’s inclusion in the race suggests increasing confidence in its market potential.
The price of AVAX has reacted to the news, trading at $20.28, down 6.6% in the past 24 hours, reflecting broader market volatility. However, Avalanche remains 10% up over the past week, indicating sustained investor interest despite short-term fluctuations. The ETF’s approval could provide a boost to AVAX’s liquidity and adoption, making it more attractive to institutional investors.
Shogun Lin
