Nasdaq has submitted a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) seeking approval for the listing of a spot Avalanche exchange-traded fund (ETF) managed by Grayscale.
Grayscale currently manages an Avalanche Trust that comes with a 2.5% management fee. The filing aims to introduce a more cost-effective and flexible investment option providing exposure to the AVAX token, aligning with the growing trend in the industry towards creating regulated vehicles for altcoin trading. However, the SEC has not yet approved any spot altcoin ETFs beyond those linked to ether (ETH).
If the filing is approved, Grayscale’s fund would offer traditional investors another avenue to invest in crypto assets through regular brokerage accounts. The ETF’s custodian would be Coinbase Custody, as stated in the filing.
The ETF would directly hold AVAX, mirroring the market price of the Avalanche network’s native token. Currently, the cryptocurrency is trading at $20.5, experiencing a 6.6% decrease in value over the last 24 hours amid a broader market downturn that has caused the CoinDesk 20 Index (CD20) to drop by over 4%.
Other companies are also exploring opportunities in Avalanche. Earlier this month, VanEck submitted an S-1 form for an Avalanche ETF.
Furthermore, Grayscale recently filed for a Cardano ETF, which would mark the company’s first standalone ADA investment vehicle.
