Grayscale AVAX ETF enters the final stage; can it outpace VanEck and Bitwise in SEC approval?

The competition for the United States’ first Avalanche (AVAX) spot ETF has entered a critical stage. Grayscale Investments recently submitted a second amended S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for the Avalanche spot ETF, showing that it is accelerating the transformation of its existing AVAX trust product into a physically-backed ETF that can be listed and traded on Nasdaq, with the proposed ticker symbol GAVX.

The core of this update lies in substantial improvements at the structural level. Grayscale ultimately confirmed in the filing that it will adopt a “physical creation and redemption” model, allowing authorized participants to directly exchange AVAX tokens for ETF shares, rather than settling only in cash. This mechanism helps improve price tracking accuracy and is more aligned with institutional investors’ tax efficiency needs, representing an important compliance advancement for physical crypto ETFs.

Additionally, Grayscale clarified in the latest document that Grayscale Investments Sponsors LLC will serve as the sole sponsor, further simplifying the governance structure and accountability system. This adjustment is interpreted by the market as a positive response to recent SEC regulatory feedback, indicating that the product is gradually aligning with the same institutional standards as Bitcoin and Ethereum spot ETFs.

However, regarding key commercial terms such as management fees, staking costs, and potential fee waivers, Grayscale remains restrained and has not disclosed specific details in the filing. This “undetermined pricing” strategy may be related to its upcoming transition from the over-the-counter market (original code AVAXFUN) to a Nasdaq main board listing, aiming to retain greater flexibility to respond to regulatory developments.

On the market side, as of now, AVAX is priced at approximately $12.11, with a slight decline over the past 24 hours. Analysts believe this more reflects a cooling of overall crypto market sentiment rather than issues with Avalanche fundamentals or ETF progress itself.

It is worth noting that Grayscale is no longer the only institution betting on an AVAX spot ETF. Bitwise has also submitted related S-1 documents and chosen Coinbase as the custodian, strengthening its compliance and security narrative; VanEck, on the other hand, has moved faster, submitting a third revision and being the first to disclose a low management fee of about 0.34%, while exploring the possibility of introducing staking yields.

If the AVAX spot ETF is ultimately approved, it will provide Avalanche with a pathway into traditional brokerage account systems, significantly increasing liquidity and institutional recognition. As multiple asset management giants advance simultaneously, the approval outcome of the US AVAX spot ETF may become an important indicator in the crypto asset compliance process before 2026.