Crypto asset manager Bitwise has filed an S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) tracking Avalanche’s native token, AVAX. If approved, Coinbase would serve as custodian for the product.
According to the filing, the ETF aims to simplify investor access to Avalanche through traditional brokerage accounts. “The Trust provides investors with the opportunity to access the market for Avalanche through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding Avalanche directly,” Bitwise wrote.
The firm added that it “believes that the design of the Trust will enable certain investors to more effectively and efficiently implement strategic and tactical asset allocation strategies that use Avalanche by investing in the Shares rather than purchasing, holding and trading Avalanche directly.”
The fund would hold AVAX tokens directly, rather than using derivatives. Its net asset value (NAV) would be based on the CME CF Avalanche-Dollar Reference Rate, representing the per-share value of the ETF after accounting for assets and liabilities.
Bitwise’s filing comes as rivals also target Avalanche products. Grayscale has moved to convert its existing Avalanche Trust into a spot ETF, while VanEck has filed for its own AVAX fund. Earlier this month, Bitwise registered an Avalanche trust in Delaware, signaling preparation for this launch.
The push for an Avalanche ETF comes at a time when the network itself is seeing strong momentum. Just last week, the Avalanche Foundation revealed plans to raise $1 billion to set up two treasury firms in the U.S., which would buy AVAX tokens at discounted prices. These kinds of treasuries, much like ETFs, are becoming another route for traditional investors to gain exposure to crypto.
Avalanche, launched in 2020, has built a reputation as a fast and scalable Layer 1 blockchain. It’s already being tested for tokenization projects by big names like Apollo and BlackRock, while Anthony Scaramucci’s SkyBridge has looked into tokenizing $300 million worth of assets on the network. Bitwise, founded in 2017, is no stranger to this space.
The firm already manages several crypto investment products, from index funds to Bitcoin and Ethereum ETFs. It has also filed for single-asset ETFs tied to Chainlink and XRP.
