Grayscale is pushing its Avalanche Trust to the U.S. Securities and Exchange Commission (SEC) for approval, aiming to “uplist” the investment vehicle and convert it into a full-fledged exchange-traded fund (ETF). This move marks a significant step in the race to secure approval for Avalanche-based products, as asset managers compete to roll out similar offerings for altcoins like Solana and XRP.
What’s in the Avalanche Trust Product?
Introduced last year as a private placement for accredited investors, Grayscale’s Avalanche Trust would provide exposure to Avalanche’s spot price on the Nasdaq, with the coins kept safe by crypto exchange Coinbase, according to a recent SEC filing.
Competition in the Avalanche ETF Space
This filing comes shortly after VanEck, another crypto asset manager, set up an Avalanche fund in Delaware, hoping for a spot Avalanche ETF in the U.S. Meanwhile, Nasdaq submitted a 19b-4 form to list shares of Grayscale’s Avalanche Trust in March, pushing forward the fund's approval process.
SEC’s Slow Approval Process
However, the SEC has been slow to approve such applications, giving itself extra time to review VanEck’s bid earlier this year. Grayscale’s ETF holding Solana, XRP, and Cardano was also initially approved in July, only to face a pause soon after. Experts are now anticipating a flurry of approvals in October, especially after Bitcoin and Ethereum spot ETFs made their debut in the U.S. last year.
Bloomberg’s James Seyffart has predicted a 90% chance that Avalanche ETFs will be approved in 2025, placing similar odds on Dogecoin, Polkadot, Cardano, and HBAR ETFs.
Avalanche’s Market Position and Future Forecasts
Avalanche (AVAX) holds the 22nd spot in the cryptocurrency rankings with a $10 billion market cap, according to CoinGecko.
Though the price dropped to $24 recently, marking a 7.6% loss, Avalanche’s unique scaling system, including its app networks (formerly subnets), has fueled optimistic forecasts. Standard Chartered predicts the token could hit $55 by year-end, with a potential $250 by 2030. Avalanche remains a top player in decentralized finance (DeFi), with nearly $2 billion in assets locked in DeFi applications.
Roman Zaika
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