Nasdaq has officially submitted a request to the U.S. Securities and Exchange Commission (SEC) for approval to list Grayscale Investments’ spot Avalanche exchange-traded fund (ETF).
The filing, dated March 27, proposes a rule amendment that would allow the Grayscale Avalanche Trust (AVAX) to be listed on the exchange. This ETF is designed as a conversion of Grayscale’s existing closed-end AVAX fund, which first launched in August 2024.
According to Grayscale’s website, its SEC-registered products are positioned for potential uplisting once regulatory conditions allow. The firm explained that converting the fund into an ETF would introduce an arbitrage mechanism that helps align the product’s price with the value of its underlying assets.
As of now, the Grayscale Avalanche Trust manages approximately $1.76 million in assets. Each share represents just over 0.49 AVAX, with a net asset value of $10.86. Based on CoinMarketCap data, AVAX is currently priced at $10.11, meaning the fund is trading at a 7.4% premium compared to its underlying holdings.
Grayscale Expands Crypto ETF Portfolio
Grayscale currently offers 28 cryptocurrency-related investment products, including 25 single-asset funds and three diversified funds. The firm is also awaiting regulatory approval for additional offerings, such as a potential XRP spot ETF.
In addition to its Avalanche ETF filing, Grayscale has also applied to convert its Litecoin Trust into an ETF and has submitted a request for a Cardano spot ETF. These efforts follow the company’s successful transformation of its Bitcoin and Ethereum funds into spot ETFs.
Last year, Grayscale announced the introduction of its Bitcoin Mini Trust and Ether Mini Trust—spin-off versions of its existing Bitcoin and Ethereum ETFs that come with reduced fees.
By the end of 2024, data showed that over $21 billion had been withdrawn from the Grayscale Bitcoin Trust (GBTC) since it became a spot ETF on January 11, 2024. At the time, GBTC was the only U.S.-based Bitcoin ETF experiencing a net outflow.
Grayscale’s Bitcoin ETF carries an annual management fee of 1.5%, the highest among its competitors. In contrast, its Bitcoin Mini Trust charges just 0.15%, while rival ETFs in the market keep their fees below 0.25%.
A similar trend is seen in Ethereum-based ETFs, where Grayscale’s Ether Mini Trust has the lowest fee, while its older Ethereum trust product remains at the higher end of the pricing scale. Other competing Ethereum ETFs also maintain fees of 0.25% or lower.
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