Grayscale Investments is pressing ahead with its plans to launch a spot Avalanche exchange-traded fund (ETF).

In a key step, Nasdaq filed with the US Securities and Exchange Commission (SEC) on March 27th to list and trade shares of the Grayscale Avalanche Trust as an ETF.

Interestingly, despite this ETF application news, the price of AVAX has actually dipped, falling over 7% in the past 24 hours to $20 at the time of writing, according to CryptoSlate’s data.

Avalanche ETF

The filing explains that the ETF’s objective is to closely track the market price of AVAX – the Avalanche blockchain’s native token – using a benchmark index.

The document clarifies that while this investment vehicle won’t let investors directly hold AVAX, it will provide a simpler route to gain exposure to the cryptocurrency. Nasdaq emphasized that the ETF is intended to offer this access with reduced costs and fewer technical hurdles compared to self-custody or navigating crypto exchanges.

According to the filing, several key players are lined up to support the ETF. CSC Delaware Trust Company is slated to act as the fund’s trustee, while Coinbase Custody Trust Company is set to be responsible for custody.

Adding to this reputable lineup, BNY Mellon is anticipated to handle administration and transfer agent duties, Foreside Fund Services will oversee marketing efforts, and CoinDesk Indices, Inc. will supply the benchmark index to monitor AVAX’s price.

This ETF launch could potentially convert Grayscale’s current Avalanche Trust into a publicly accessible product. The trust currently manages approximately $1.7 million and has a 2.5% annual fee.

Importantly, Grayscale isn’t alone in pursuing an AVAX ETF. Earlier this month, prominent asset manager VanEck also submitted filings with the SEC for a comparable product, highlighting a growing trend of institutional interest in Avalanche.

Emin Gün Sirer, the founder and CEO of Ava Labs, welcomed this increasing attention on AVAX ETFs. He commented that these types of products provide a new avenue for investors to engage with sophisticated blockchain technology without requiring extensive technical expertise.