Grayscale Unveils AVAX Trust

Crypto’s oldest asset manager is launching a new investment vehicle that will offer certain individuals exposure to Avalanche.

What’s the Scoop?

• New Trust: The Grayscale Avalanche Trust will offer AVAX exposure to qualified investors under its private placement model.
• Restricted Access: Like many other Grayscale products, the AVAX fund will only be available via private placement, meaning that redemptions are unavailable, which could cause the product to trade at extreme discounts and premiums, and only accredited investors can purchase shares, subject to a one-year mandatory holding period.

Bankless Take:

While the pathway towards spot AVAX ETFs was illuminated by a Coinbase Derivatives filing in late June to list AVAX futures, the presence of private placement Grayscale Trusts with loose registration criterias yields zero bearing on the future likelihood of spot ETF approval for any digital asset.