Grayscale Investments has taken a step towards expanding its ETF lineup by filing an application with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Avalanche Trust into a spot ETF. This move is similar to how the company acted with its Bitcoin and Ethereum products, which ultimately led to ETF approvals.
Key details of the application
Trust launch: Grayscale launched this trust based on$AVAX in August 2024. Initially, it was a closed fund that invested only in Avalanche.
Mechanism of operation: According to the submitted documents, the issuance and redemption of shares of the fund will take place in cash.
Partners: The role of custodian (asset holder) will be performed by the cryptocurrency exchange Coinbase, while BNY Mellon will act as the manager and transfer agent.
Staking: An important feature of the application is the ability to earn additional income through staking. If approved, the fund may use up to 85% of its assets for staking, which could potentially increase profitability for investors.
Grayscale is not the only company interested in an Avalanche ETF. VanEck has also submitted a similar application, which, like Grayscale's, includes a staking option. This indicates a growing interest in Avalanche as an investment asset.
