EddieJayonCrypto
25 Aug 25
Grayscale’s Avalanche Trust is taking a bold step toward becoming a full-fledged ETF, as the crypto asset manager submitted its registration statement to the SEC. This move marks a pivotal moment for Avalanche, which has long been a favorite among DeFi enthusiasts but has yet to secure a spot on maj...
Grayscale’s Avalanche Trust is taking a bold step toward becoming a full-fledged ETF, as the crypto asset manager submitted its registration statement to the SEC. This move marks a pivotal moment for Avalanche, which has long been a favorite among DeFi enthusiasts but has yet to secure a spot on major exchanges through an ETF. The proposed fund would allow investors to track Avalanche’s price in real time on Nasdaq, with Coinbase acting as custodian—a critical detail that underscores the industry’s growing emphasis on security and institutional trust. But Grayscale isn’t alone in this race. Competitors like VanEck are also pushing for Avalanche-focused ETFs, joining a broader wave of applications for altcoins such as Solana, XRP, and Cardano. However, the SEC’s cautious approach has created a bottleneck. In June, the agency delayed VanEck’s application, echoing similar setbacks for other crypto ETF proposals. Yet, the commission’s recent shift toward a “merit-neutral approach” has sparked optimism. Analysts predict a potential flood of approvals in October, following the successful launch of Bitcoin and Ethereum ETFs last year. Bloomberg’s James Seyffart has placed a 90% chance on Avalanche ETFs clearing the SEC this year, a bet mirrored for Dogecoin, Cardano, and others. This optimism isn’t unfounded. Avalanche, now the 22nd-largest cryptocurrency by market cap, has shown resilience despite a recent 7.6% price drop to $24. Investment bank Standard Chartered even forecasts a meteoric rise, projecting $55 by year-end and $250 by 2030, citing Avalanche’s innovative use of app networks (formerly subnets) to scale its blockchain. Avalanche’s appeal lies in its DeFi ecosystem, which hosts nearly $2 billion in assets—a testament to its popularity among developers and users. Yet, its journey to an ETF highlights the SEC’s labyrinthine approval process, where delays and scrutiny often overshadow the promise of innovation. As Grayscale and others press forward, the question remains: Will the SEC’s cautious stance finally give way to a new era of crypto ETFs, or will the race for institutional adoption continue to be a marathon of patience and persistence?