NASDAQ Applies to SEC to List Grayscale’s AVAX ETF

NASDAQ has submitted an application to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s Avalanche (AVAX) ETF. The decision could significantly affect market dynamics if approved.

The filing is significant as it highlights growing institutional interest in alt-coin ETFs, potentially enhancing crypto market diversity.

Development and Market Reaction

Grayscale Investments is behind the ETF, with Nasdaq handling the application to the SEC. Emin Gün Sirer of Ava Labs remarked that the ETF would offer easy access to blockchain investment, emphasizing that “ETFs represent a fresh way for investors to interact with advanced blockchain infrastructure without needing deep technical know-how.” Despite excitement, AVAX’s price fell by 7.8%.

Experts like Joe McCann suggest that approval could boost institutional participation and liquidity for Avalanche. The Grayscale Avalanche ETF application follows VanEck’s recent attempt at an AVAX ETF. If approved, this could echo previous Bitcoin and Ethereum ETF successes, promoting institutional interest and possibly driving value increases.

Data from CoinMarketCap shows Avalanche (AVAX) at $19.96 per token, with a market cap of $8.28 billion and a trading volume of $304.95 million. Price changes reflect a 9.12% decline over the last 24 hours.

The introduction of specific crypto ETFs marks the maturing of digital asset markets. Spot ETFs for individual digital currencies could provide broader investment opportunities and integration into regulated industries, shaped by a knowledgeable demographic.