Nasdaq Submits 19b-4 for Grayscale’s Avalanche (AVAX) ETF
Nasdaq submitted a Form 19b-4 to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s Avalanche (AVAX) Trust as an exchange-traded fund (ETF). The AVAX ETF, upon approval, would render the existing Grayscale AVAX Trust a publicly traded product, providing investors with direct exposure to the 17th-largest cryptocurrency by market capitalization.
This is another move in the expanding space of altcoin ETFs driven by institutional interest and regulatory resistance following approvals for Bitcoin and Ethereum ETFs.
Growing Institutional Interest in Altcoin ETFs
Grayscale’s filing is also part of a larger strategy to expand its crypto ETF universe, with filings already on file for Solana (SOL), XRP, Polkadot (DOT), Litecoin (LTC), and Hedera (HBAR).
The race is heating up—VanEck just submitted an S-1 for an AVAX fund, and Bitwise has requested a Dogecoin ETF. Institutional investors are reaching beyond Bitcoin and Ethereum, seeking entry into new-fangled blockchain networks.
Altcoins like Hedera and Litecoin are some of the strongest contenders for approval, Bloomberg ETF analyst Eric Balchunas writes, referring to continued regulatory talks.
SEC’s Cautious Evolution and Market Implications
The SEC’s response to these filings will be crucial. While the agency has historically been slow to adopt crypto ETFs, new political conditions—like Trump’s reelection and perceived pro-crypto stance—could tip the scales in favor of approval.
The SEC recently approved the Nasdaq Hedera ETF application, starting a 21-day public comment period. The same is expected for AVAX.
Once listed, these ETFs might normalize investment in altcoins, enhance liquidity, and attract broader institutional investors. Grayscale’s AVAX ETF would serve as a watermark for Avalanche and signify mainstream recognition of financial products tied to altcoins.
What’s Next
With Franklin Templeton, Bitwise, and VanEck continuing to file altcoin ETF applications, the green flag for Grayscale’s AVAX ETF can set a domino effect. For now, investors and market onlookers hold their breaths for the SEC to make up their minds, which can redefine the altcoin investment universe.
