Grayscale has taken another concrete step toward bringing a spot Avalanche (AVAX) ETF to U.S. markets, filing a second amended S-1 with the SEC to convert its existing Avalanche Trust into a spot ETF. The update has reignited interest in AVAX, which rose more than 9% over the past week as traders positioned for a possible Nasdaq listing—though SEC approval is far from certain.
What changed in the filing
- The amended S-1 is a targeted update rather than a complete rewrite. Most revisions focus on in-kind creation and redemption mechanics, expanded risk disclosures, updated tax language, and refreshed financial data—suggesting Grayscale is actively engaging with SEC feedback during the review process.
- The filing also clarifies governance: Grayscale Investments Sponsors LLC is confirmed as the sole sponsor of the trust, aligning the product with Grayscale’s other ETF structures.
- Notably absent are details on a management fee, staking policy, or potential fee waivers—information competitors have already disclosed.
Listing plans and market impact
- If approved, Grayscale said the ETF would list on Nasdaq under the ticker GAVX. Today, the trust trades over-the-counter as AVAXFUN; conversion to an exchange-listed ETF could boost liquidity and price discovery for AVAX.
- Rival issuers are moving quickly. For example, VanEck recently disclosed a 0.30% management fee and named Coinbase as its staking provider for an Avalanche ETF proposal—information Grayscale has not yet revealed.
Price and market structure
- AVAX saw a sharp rally on ETF-related headlines but gave back some gains: the token slipped about 2.5% in the past 24 hours and traded near $12.08 at the time of writing, after a week-to-date surge. Traders appear to be taking short-term profits.
- Trading volume and derivatives activity point to fading momentum: spot activity dropped nearly 18% over the last day, and CoinGlass data shows AVAX futures open interest declined just over 2% to roughly $489 million, with Binance, OKX, and Bybit all reporting lower open interest within hours. That pattern signals reduced leverage and softer speculative demand, at least for now.
- Broader market indecision—Bitcoin and Ethereum lacking clear direction—also appears to have dampened risk appetite across altcoins.
Why the timing matters
- The filing comes amid increased engagement between regulators and the Avalanche ecosystem: the SEC’s Crypto Task Force recently met with Ava Labs, the Blockchain Association, and the Digital Chamber to discuss digital-asset regulation and market structure. Several Avalanche ETF issuers updated their S-1s shortly after, implying growing alignment between issuers and the SEC’s evolving review framework.
- The broader ETF landscape has shifted already—spot Bitcoin and Ethereum ETFs set important precedents—and issuers seem to be building toward similar outcomes for spot altcoin ETFs. Still, approval is not guaranteed and will depend on ongoing regulatory review.
Bottom line
Grayscale’s amended S-1 doesn’t resolve every outstanding question, but it signals steady progress in the firm’s ETF strategy and puts Avalanche back in the spotlight. Traders and investors will be watching future filings, any disclosures about fees and staking, and regulatory signals that could determine whether an AVAX spot ETF becomes the next big listing on U.S. exchanges.
Read more AI-generated news on: undefined/news
