Grayscale Files Avalanche ETF Update as AVAX Jumps 9% This Week
Grayscale Investments filed an updated S-1 with the US Securities and Exchange Commission this week for its proposed Avalanche ETF...
Quick overview
- Grayscale Investments has filed an updated S-1 for its proposed Avalanche ETF, moving closer to a Nasdaq listing.
- The ETF aims to provide a secure way for investors to access the Avalanche blockchain ecosystem, though details on fees and staking are limited.
- AVAX prices surged over 9% recently due to ETF anticipation but have since experienced a slight decline amid mixed market sentiment.
- The filing reflects ongoing regulatory discussions and highlights the growing maturity of institutional-grade crypto ETFs.
Grayscale Investments filed an updated S-1 with the US Securities and Exchange Commission this week for its proposed Avalanche ETF, a big step toward listing on the Nasdaq. The filing shows how the Avalanche Trust is being transformed into a spot ETF, providing investors with a safe way to access the Avalanche (AVAX) blockchain ecosystem.
The update doesn’t get into much detail about the fees they plan to charge or how their staking system will work. Still, it does cover some of the technical stuff that has to be sorted out before an ETF can launch, such as how investors can get in or out of the fund and how it handles tax and risk disclosures. Grayscale notes that Grayscale Investments Sponsors LLC will be the sole sponsor of the trust, potentially addressing some of the SEC’s concerns with the proposal.
The new ETF is expected to trade under the ticker GAVX as soon as it is approved, a change from its current OTC ticker symbol, AVAXFUN. Given how closely people are watching the institutional side of things, the timing of this filing is no coincidence.
Latest: Grayscale revamps S-1 for Avalanche ETF, integrates staking features to allow 70% AVAX holdings stake for passive income. Trading as "GAVX" on Nasdaq soon, AVAX buzz drives 9% rally! 👀#CryptoNews #AvalancheETF pic.twitter.com/Q72rLyqcxV
— CoinLaw (@coinlaw_io) December 24, 2025
AVAX Reacts to ETF Anticipation
AVAX prices have really taken off over the past week, rising more than 9% amid excitement over the ETF launch. However, this excitement may have burnt out for the moment: over the past 24 hours, AVAX has actually dropped 2.5% and is currently trading at around $12.08. In contrast to its highs and lows from the day, which ranged from $11.88 to $12.34.
As it stands, market indicators suggest a bit of a mixed bag in terms of investor sentiment:
- Trading volume has really dropped off over the past 24 hours – down 18%
- AVAX futures open interest is now at $489.38 million, which is a 2.09% drop
- Futures trading on key exchanges has also looked soft, with Binance, OKX, and Bybit all reporting declines of 1.93%, 2.10%, and 0.68%, respectively.
The price swings have been a consequence of a rally that began last week when VanEck announced details of its Avalanche ETF (VAVX), including a 0.30% management fee and staking via Coinbase Crypto Services.
Regulatory Context and Market Implications
Grayscale’s decision to update its S-1 filing this week coincides with interesting discussions at the US Securities and Exchange Commission involving a Crypto Task Force and others. The likes of Ava Labs, the Blockchain Association, and The Digital Chamber are all at the table, debating issues such as investor protection, tax matters, and regulatory operational procedures.
Grayscale’s ETF will be the latest in a growing list of institutional-grade crypto ETFs to reach market – a sign that the space is maturing. Despite AVAX’s short-term price volatility and low trading volumes, listing the ETF could bring a whole load of benefits: a regulated investment option, a more liquid market, and some much-needed institutional capital.
For investors, the S-1 update is a major milestone, and one that says a lot about regulatory compliance, institutional adoption, and the delicate interplay between token performance and investor interest in this highly dynamic crypto landscape.
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