Grayscale Avalanche has finally officially filed Form 19b4 listing AVAX Trust with the Securities and Exchange Commission (SEC). As part of that filing on March 29, 2025, Grayscale seeks to convert their existing trust product to a publicly traded ETF. This comes after the successful launch of Bitcoin and Ethereum spot ETFs in the early part of this year.

Key-Takeaways:

• The two successful launches of Bitcoin and Ethereum ETFs by Nasdaq has prompted it to file Form 19b-4 with the SEC seeking approval to list the Grayscale Avalanche (AVAX) ETF.
• This is part of a larger trend of altcoin ETF applications, with other competition in the form of VanEck also trying to get their altcoin ETFs in as well.
• However, there are different levels of approval, depending on the altcoins, and according to Bloomberg’s Eric Balchunas, the chance of approval is 90 percent for litecoin.
• If approved, Grayscale Avalanche ETF will provide traditional investors regulated access to AVAX as well as help increase institutional adoption of the Avalanche network.

Growing Interest in Altcoin ETFs

There has been growing interest from the crypto space for the altcoin ETFs beyond BTC and ETH. Part of this trend, Grayscale wants to take advantage of its AVAX ETF application. At the moment, AVAX is the 17th largest cryptocurrency by market cap.

It is not the only altcoin ETF filing out there. A few weeks ago, VanEck filed an S-1 for an investment product based on AVAX, which is similar to this one. Competition is growing as the race begins to see the first AVAX ETF go to market.

AVAX was not the only addition to Grayscale’s cryptocurrency ETF portfolio that’s been expanding beyond the cryptocurrency. For several other altcoins, the asset manager has pending applications. XRP, Solana (SOL), Litecoin (LTC) and Polkadot (DOT) form a part of these.

Regulatory Environment and Approval Chances

The regulatory landscape that the cryptocurrency ETFs have to face has changed dramatically in recent months. This set the precedent for other digital asset products’ approval. Most analysts view this as opening the door to altcoin ETFs.

In response, Bloomberg ETF analyst Eric Balchunas has offered his odds on how approval could go for all altcoin ETFs. Balchunas says that Litecoin has a 90 percent chance of approval. Dogecoin, Solana, XRP follow in descending likelihood order.

These applications will provide the SEC with the indication of how it leans into crypto regulation. Previously cautious, political shifts now make such a situation look more favourable. New ETF filings have been encouraged by Donald Trump’s reelection and his administration’s crypto friendly stance.

Market Implications of Altcoin ETFs

If altcoin ETFs are approved, it could change the institutional investment strategy in the crypto space. An easier access to digital assets to traditional investors would be these regulated products. This could also create added market liquidity and stability the many believe.

Along with other crypto ETF developers, Nasdaq has put itself in the driver’s seat of building crypto ETF. Numerous 19b4 forms have previously been filed by the exchange for various cryptocurrency products. Other exchanges are also not far behind as NYSE recently submitted an application for Bitwise’s Dogecoin ETF.

Approval of the AVAX ETF would lift institutional adoption of the Avalanche network to new heights. Furthermore, it might also influence the SEC’s decisions on other pending applications. VanEck, Franklin Templeton, and Bitwise are all companies actively seeking out ETFs for different altcoins.

Conclusion: Grayscale Avalanche

Usually, the SEC follows a standard process for ETF applications. Last month the agency said it had approved the Hedera (HBAR) ETF proposal from Nasdaq. Such a decision prompted 21 days of public feedback from industry. The AVAX ETF application might use a very similar timeline as well.

This is a big step in the formation of the altcoin ETF industry. Regulators experiment with this new frontier of digital asset investment products, and the industry waits to see how they will play out.