Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Avalanche (
$AVAX ) exchange-traded fund (ETF), entering direct competition with VanEck and Grayscale in the race to bring regulated AVAX exposure to traditional investors.
Bitwise’s S-1 Filing
On September 15, 2025, Bitwise submitted a Form S-1 registration, outlining plans to create a trust-based ETF that will hold AVAX tokens directly. The goal: give investors access to Avalanche through regular brokerage accounts—without the burden of wallets, private keys, or direct custody.
Why It Matters
The proposed Bitwise AVAX ETF is designed to remove barriers for institutions that are restricted from holding cryptocurrencies directly. Instead, they can gain exposure to Avalanche’s growth via a regulated, transparent investment product.
Custody: Coinbase Custody Trust Company will safeguard the fund’s AVAX tokens in segregated cold storage, ensuring compliance with New York banking law and industry-best security practices.
Structure: The ETF will avoid derivatives, holding AVAX directly. Shares will be issued and redeemed in 10,000-share baskets, settled in cash or AVAX.
Benchmark: NAV will track the CME CF Avalanche–Dollar Reference Rate, published daily by CF Benchmarks.
Rising Institutional Interest
Avalanche has been gaining traction among institutions due to its scalability, speed, and active DeFi ecosystem. Recent months saw DEX volumes exceed $2 billion for eight consecutive weeks, the first time since 2021. Major firms like Apollo, BlackRock, and SkyBridge are exploring tokenization projects on the network.
Meanwhile, the Avalanche Foundation has unveiled a $1 billion liquidity initiative, further fueling ecosystem expansion.
Competitive Landscape
Bitwise isn’t the first to target an AVAX ETF. VanEck filed for a spot Avalanche ETF in March 2025, while Grayscale applied in August to convert its Avalanche Trust into a spot ETF. None have yet received SEC approval. Bitwise’s filing intensifies the race to become the first mover in this space.
Market Snapshot
As of writing, AVAX trades at $30.48, up 6.47% in 24 hours, though still down over 53% from its all-time high. The volatility underscores both the risk and potential upside that a spot ETF could bring to mainstream investors.
Conclusion
The Bitwise AVAX ETF represents another step in the institutionalization of crypto investing. By offering a simple, regulated gateway to Avalanche, Bitwise is expanding its footprint in the ETF sector and positioning AVAX as a key player in the next phase of blockchain adoption.
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📌 Key Terms
AVAX – Native token of the Avalanche blockchain.
ETF – Exchange-traded fund traded on stock exchanges.
S-1 Filing – Registration form required by the SEC for new securities.
Custody – Secure safekeeping of assets.
Cold Storage – Offline storage to reduce hacking risks.
Trust-Based ETF – Holds assets directly instead of using derivatives.
NAV (Net Asset Value) – Value of assets minus liabilities per share.
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