Simply put
- Grayscale has filed a registration statement for an Avalanche Trust.
- Vanek is also looking for approval of US Avalanche ETFs.
- Analysts are focused on the upcoming cryptocurrency ETF approvals in October.
Grayscale, a crypto asset manager, has submitted a registration statement for an Avalanche Trust to the SEC. They’re seeking approval to transition this investment vehicle into a full-fledged exchange-traded fund.
This product, which Grayscale introduced last year as a private investment option for accredited investors, is linked to the spot prices of Avalanche on the Nasdaq. The coins held by the fund are secured through the Coinbase exchange.
Friday’s registration marks another milestone in the approval process for Avalanche-focused funds, with asset managers vying to create similar offerings for other altcoins.
In March, Nasdaq submitted a Form 19B-4 on behalf of Grayscale, listing shares in the Avalanche Trust. Meanwhile, crypto asset manager Vanek recently established a trust for Delaware-based Avalanche funds, aiming for spot Avalanche ETFs in the U.S.
In June, the SEC extended the timeframe regarding Vanek’s application, amidst delays affecting various cryptocurrency-focused submissions.
The committee has allowed Grayscale to list ETFs that include Solana and XRP. However, a decision regarding Cardano was held up in July. The SEC pointed to a need for a “market-neutral approach” with respect to certain crypto ETF applications. Experts remain hopeful for a series of approvals in October, following last year’s Bitcoin and Ethereum ETF introductions.
Bloomberg ETF analyst James Seifert recently noted a 90% probability that an Avalanche ETF would be approved in the U.S. this year. He also assigned similar odds to applications for ETFs involving Dogecoin, Cardano, Polkadot, and Hbar.
Avalanche currently ranks as the 22nd largest cryptocurrency by market capitalization, valued at roughly $10 billion according to Coingecko. As of Monday, the token price had declined to $24, down about 7.6% over the previous day.
In April, Standard Chartered predicted that Avalanche could reach $55 by year-end and $250 by the decade’s close, emphasizing the network’s unique scalability approach. Avalanche had previously reached a high of $155 in 2021.
As a notable Layer-1 network in decentralized finance, Avalanche’s ecosystem had about $2 billion in assets utilized within its DeFi applications as of Monday, according to the Crypto Data Provider.
