Grayscale bets on Avalanche after XRP and DOGE, the SEC will decide soon

The rush for crypto ETFs no longer needs a starting signal. Those waiting for an official green light will just watch the train pass by. The movement has started, and the sharpest are already looking for the next crypto to tame. Grayscale, far from being a minor player, bets on Avalanche. This challenger-like blockchain could well become the darling of investors, provided the American watchdog validates the entry ticket.

Grayscale chooses Avalanche: a crypto strategy that resonates

On a crypto chessboard largely dominated by Bitcoin and Ethereum, Grayscale advances a bold pawn. In August 2025, the investment giant filed an S-1 form to transform its Avalanche Trust into a spot AVAX ETF. Objective: offer direct exposure to this token via Nasdaq. Nothing fuzzy here. No derivatives, no leverage. Just pure, unapologetic AVAX.

Coinbase will be responsible for asset custody. BNY Mellon will manage administration. This shift fits into a broader dynamic: XRP, DOGE, ADA, LTC… Grayscale multiplies its applications. 

In connection with the effectiveness of this registration statement and the listing of shares on the Nasdaq stock market, the sponsor intends to rename the Trust as Grayscale AVAX Trust ETF, as described in this registration statement.

Grayscale – Source: SEC

Project peculiarity: up to 85% of AVAX could be staked if conditions allow. A passive ETF, but potentially lucrative. A subtle way to attract cautious profiles… without frustrating yield enthusiasts.

The altcoin that seduces the big shots of finance

Still shunned by the general public, Avalanche has nevertheless convinced funds and companies. This proof-of-stake network, launched in 2020, relies on subnets to offer modular, fast, and interoperable blockchains. And it’s starting to pay off.

Luigi D’Onorio DeMeo summed it up on X:  “Avalanche has always been that blockchain in search of real use cases, to migrate the world onto the chain“.

Signals are multiplying:

• Toyota is experimenting with a mobility network based on several Avalanche subnets;
• SkyBridge Capital launched a $300 million project there;
• Visa uses Avalanche for its stablecoin settlements;
• Wyoming chose this blockchain for its FRNT stablecoin;
• Simplex, a listed Japanese company, is working on new tokens.

And yet, AVAX has lost 55% since December 2024, showing a 35% drop over the year. A tumble that would cool some down… but excites opportunists. For them, Avalanche is a bargain deal.

Avalanche ETF: crypto diversification or quiet revolution?

This project goes far beyond novelty. It symbolizes a profound change in crypto portfolio management. No longer betting only on bitcoin or ether is like playing in black and white in a technicolor world. The AVAX ETF, if it comes to life, could be the first US tracker based on a blockchain with smart contracts outside the top 2.

And above all, this product changes the game by betting on simplicity. No leverage, no derivatives, nothing toxic: the AVAX ETF offers direct, clear exposure. It also stands out with potential yield thanks to staking, offering a rare balance between passivity and performance. Finally, Avalanche positions itself as a useful infrastructure, far from simple speculative bets.

Key figures to keep in mind:

• Grayscale manages $25B in BTC ETFs and $5B for ETH;
• The AVAX Trust currently holds less than $15M in assets;
• Its NAV per share is at 12.20%, compared to 27% in December 2024;
• AVAX is at $24, far from last December’s $54;
• The S-1 filing dates from August 22, 2025, after an initial 19b-4 filing in March.

This would not be a first. The American watchdog has a habit of its own: buying time. It has again postponed the decision date for XRP, Ethereum, and Litecoin ETFs. A patience strategy that not all investors share. Grayscale, however, decided to move forward… even without the green light.