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In a significant move that could reshape altcoin investment vehicles, Grayscale has officially filed with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot Exchange-Traded Fund (ETF). The filing, submitted via the regulatory 19b-4 form through Nasdaq, marks a new milestone in the push toward mainstream acceptance of altcoin-based ETFs.
Avalanche ETF Could Broaden Institutional Crypto Access
If approved, Grayscale’s Avalanche Trust—originally launched in August 2024—would be transformed into a spot ETF, allowing it to be traded publicly on Nasdaq. This would make Avalanche (AVAX) the third digital asset in Grayscale’s ETF portfolio, following Bitcoin and Ethereum.
The move reflects growing institutional appetite for regulated exposure to altcoins. While the SEC has already greenlit spot ETFs for Bitcoin and Ethereum, it has yet to approve any altcoin ETF proposals. As Turkish NY Radio reports, this filing could serve as a litmus test for how receptive the SEC might be to expanding access to other crypto assets through traditional markets.
Regulatory Landscape Could Shift Post-Election
Market watchers also note that recent political shifts may play a role. With Donald Trump reemerging as a potential frontrunner in the U.S. presidential race, expectations are rising that crypto regulation may soften. This broader political backdrop adds weight to Grayscale’s timing and could influence how the SEC approaches altcoin ETFs moving forward.
Market Reaction Remains Bearish Despite ETF Buzz
Despite the news, AVAX has fallen by 8.47% in the past 24 hours and is currently trading around $20.26. The decline mirrors the broader crypto market downturn, with Bitcoin dropping below $85,000, triggering pullbacks across most altcoins.
Still, the filing has created a buzz in the crypto community. If successful, Grayscale’s Avalanche ETF could pave the way for future listings and provide much-needed legitimacy for alternative digital assets. Turkish NY Radio will continue to monitor updates as the SEC review unfolds.
