Grayscale Avalanche Trust Set for SEC-Approved Spot ETF Launch, With Staking Potential

Quick Highlights Grayscale plans to convert its Avalanche Trust into a spot ￰0￱ to 85% of the fund's assets could be used for ￰1￱ is also eyeing an AVAX-based ETF, signaling rising ￰2￱ Moves to Launch Avalanche Spot ETF with Plans for More Altcoin Funds Grayscale Investments has filed with the ￰3￱ and Exchange Commission (SEC) to convert its Avalanche Trust into a spot ETF, continuing its efforts to expand into altcoin-based exchange-traded funds (ETFs). This move comes after the company successfully launched similar products based on Bitcoin and ￰4￱ first launched the Avalanche Trust in late August 2024 as a closed-end fund that exclusively invested in Avalanche (AVAX).

Since then, it has expanded its focus to include a broader range of ￰5￱ Plans: Expanding the ETF Portfolio Grayscale has big plans to keep growing its ETF ￰6￱ company aims to launch additional funds based on other altcoins in the near ￰7￱ to the latest S-1 filing with the SEC on August 22, 2025, the Avalanche Trust will issue and redeem shares in ￰8￱ will act as the custodian, while BNY Mellon will manage the trust and serve as the transfer ￰9￱ addition to its primary investment focus, Grayscale is also looking to increase the income potential of its ￰10￱ filing mentions the possibility of generating additional returns through staking, and if approved, the fund plans to use up to 85% of its managed assets for this ￰11￱ new feature promises to give the trust a unique advantage in the altcoin ￰12￱ Competition in the AVAX ETF Market Grayscale isn’t alone in its interest in launching an AVAX-based fund.

VanEck, another prominent financial firm, has also filed an application to offer a similar ￰13￱ filing also highlights the potential for staking, further showcasing the growing appeal of AVAX ETFs in the market.