Grayscale Investments has submitted an application to Nasdaq to convert its trust based on the cryptocurrency Avalanche (AVAX) into a spot ETF. This information became known through documents submitted to the U.S. Securities and Exchange Commission (SEC).
This is reported by Finway
The trust, which was launched in August 2024, was initially available only to accredited investors. However, after the conversion, it will be able to enter the open market, creating new opportunities for investors. The application to the SEC indicates that the trust will directly control the crypto assets rather than derivative financial instruments.
Details of the Conversion and Custodian
The custodian for the newly created spot ETF will be the service Coinbase Custody, while The Bank of New York Mellon will serve as the transfer agent. It is noted that the management fee size has not yet been disclosed, and the potential ticker for the new ETF may be AVAX.
Prospects and Market Reaction
At the time of the application submission, the asset did not react significantly to the news, and currently, its price on the Binance exchange is showing a decline of more than 8%.
“Earlier, we reported that the SEC had postponed the review of a number of new ETF applications,” the statement said.
It is also noted that Nasdaq has submitted only form 19b-4 to the SEC, and to complete the process, another form – S-1 – needs to be filled out, after which the Commission will review the application.