by Enoch Mwathwa
Grayscale has taken another step toward bringing a spot Avalanche ETF to U.S. markets after filing an updated S-1 with the Securities and Exchange Commission. The move has revived optimism around AVAX, which has climbed more than 9% over the past week as traders position for a potential listing on Nasdaq. While approval remains uncertain, the filing signals steady progress in Grayscale’s ETF strategy.
Grayscale Refines Avalanche ETF Structure After SEC Feedback
Grayscale submitted a second amended S-1 to convert its Avalanche Trust into a spot Avalanche ETF, according to the latest US SEC filing. The filing reflects targeted changes rather than a full overhaul. Most updates focus on in-kind creation and redemption mechanics, expanded risk disclosures, updated tax language, and refreshed financial data. These revisions suggest active engagement with SEC feedback during the review process.
Notably, Grayscale has still not disclosed its management fee, staking policy, or potential fee waivers. That silence contrasts with recent filings from competitors. However, the updated document confirms Grayscale Investments Sponsors LLC as the sole sponsor of the trust. This clarification strengthens the fund’s governance structure and aligns it with other Grayscale ETF products.
If approved, the ETF will list on Nasdaq under the ticker GAVX—currently, the trust trades on OTC Markets as AVAXFUN. The conversion would shift the product into a regulated exchange environment, which could improve liquidity and price discovery. Meanwhile, rival issuers continue to move fast. VanEck recently disclosed a 0.30% management fee and named Coinbase as its staking provider for its own Avalanche ETF proposal.
AVAX Price Cools as Volume Drops Despite ETF Optimism
AVAX price action has turned mixed after a strong weekly rally. The token slipped about 2.5% over the past 24 hours, trading near $12.08 at the time of writing. The pullback followed a sharp surge driven by ETF-related headlines. Traders appear to have locked in short-term gains.
Trading volume tells a cautious story. Activity dropped nearly 18% in the past day, pointing to fading momentum. Broader market uncertainty has also weighed on participation. Bitcoin and Ethereum have shown limited direction, which has reduced risk appetite across altcoins.
Derivatives data adds to the cautious tone. CoinGlass figures show AVAX futures open interest fell just over 2% to $489 million. Binance, OKX, and Bybit all recorded declines in open interest within hours. That trend signals reduced leverage and weaker speculative demand, at least in the near term.
Regulatory Signals Keep Avalanche ETF Narrative Alive
The timing of Grayscale’s filing matters. The SEC Crypto Task Force recently met with Ava Labs, the Blockchain Association, and the Digital Chamber. Those discussions focused on digital asset regulation and market structure. Shortly after, several Avalanche ETF issuers updated their S-1 filings.
This sequence suggests growing alignment between issuers and regulators. While approval remains far from guaranteed, the pace of revisions shows that issuers expect progress under the SEC’s evolving framework. The broader ETF environment has already shifted, with Bitcoin and Ethereum products setting precedent.
As deadlines approach, traders will track both regulatory signals and price structure. For now, Grayscale’s move has put Avalanche back in focus and reopened the conversation around spot altcoin ETFs in the U.S.
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