Nasdaq Files 19b-4 For a Grayscale Avalanche ETF With the SEC

Grayscale seeks approval to launch yet another crypto ETF, with Nasdaq filing a 19b-4 for an Avalanche ETF with the SEC on its behalf. On Friday, the prominent New York-based stock exchange Nasdaq submitted a 19b-4 application seeking to list and trade an Avalanche spot exchange-traded fund. The filing, done on Grayscale’s stead, seeks a rule change to offer alternative exposure to AVAX, the native token of the Avalanche ecosystem. Approval Process for a Grayscale Avalanche ETF Underway The titan asset manager already offers its clients exposure to AVAX through its trust. Launched last August, the Grayscale Avalanche Trust offers a closed-end exposure to the cryptocurrency with an expense rate of 2.50% and has accumulated $1.7 million so far. However, Grayscale seeks to convert the trust to a spot ETF tracking the AVAX token. If approved, the fund would offer a more flexible and cost-effective way for traditional investors to own the cryptocurrency indirectly. According to the filing, Coinbase, a US-based crypto exchange, will be the crypto custodian, while BNY Mellon, the largest custodian bank in the world, will act as the administrator and transfer agent. Moreover, CoinDesk Indices will provide an index for the ETF. Meanwhile, the bullish development could not sway the prevalent bearishness in the AVAX token, which mirrors the broader market downtrend. At the time of writing, the 14th largest cryptocurrency by market cap trades at $20.2, down a staggering 8% in the past 24 hours. Grayscale Files for Yet Another Altcoin ETF Interestingly, Grayscale’s Avalanche ETF application comes two weeks after asset manager VanEck submitted an S-1 filing with the US Securities and Exchange Commission (SEC) for the VanEck Avalanche ETF. Notably, the firm registered the investment product in Delaware on March 10. Grayscale also recently filed for a Cardano spot ETF, its first standalone financial product tracking ADA. This adds to its growing list of altcoin investment product applications with the SEC, having filed for XRP, Solana, Dogecoin, and Polkadot ETFs. Nonetheless, the securities watchdog has yet to approve any altcoin ETF other than Ethereum’s. Notably, the agency has only sanctioned two crypto spot ETFs: the Bitcoin and Ether spot exchange-traded funds.