Interest in Avalanche has resurfaced after a fresh regulatory development from Grayscale, but the market reaction suggests investors remain cautious despite the headline progress.
Grayscale has submitted another amended S-1 registration to the U.S. Securities and Exchange Commission, keeping its plan to convert the Grayscale Avalanche Trust into a spot ETF firmly alive. Rather than introducing headline-grabbing changes, the update focuses on technical and compliance-related adjustments, a sign that discussions with regulators are still ongoing.
Key Takeaways
Grayscale has submitted another amended S-1, signaling ongoing regulatory engagement on a potential Avalanche ETF.
AVAX price remains under pressure near $12 despite ETF-related progress, with weak momentum and declining volume.
The ETF narrative continues to advance quietly, but market participants remain cautious as demand has yet to return.
The revised filing refines how shares would be created and redeemed, expands risk and tax disclosures, and updates financial information. Grayscale also streamlined the structure by confirming Grayscale Investments Sponsors LLC as the sole sponsor of the trust. As with previous filings, the company has not yet disclosed management fees, staking details, or potential waivers.
If approved, the product would seek to list on Nasdaq under the ticker GAVX. For now, the trust continues to trade on OTC Markets under its existing symbol.
ETF competition adds pressure
Grayscale’s measured approach contrasts with more detailed disclosures from competitors. VanEck recently outlined the structure of its own Avalanche ETF proposal, including a 0.30% management fee and staking support via Coinbase’s institutional services arm.
The differing strategies highlight a broader shift among issuers. While some are prioritizing transparency early in the process, others appear focused on aligning their products with regulator expectations before revealing final economics.
AVAX price remains under pressure
Despite the ETF-related developments, AVAX price action has remained weak. The token is currently trading near the $12 level, well below its mid-year highs above $35. Although AVAX posted a short-term rally earlier in anticipation of ETF filings, that move quickly faded.
From a technical perspective, AVAX continues to trade within a broader downtrend that has been in place since October. Momentum indicators remain soft, with the relative strength index sitting below 40 and MACD still in negative territory, suggesting that selling pressure has slowed but not fully reversed. Trading volume has also declined, indicating limited follow-through from buyers despite the regulatory news.
Derivatives data echoes the same tone. Open interest in AVAX futures has edged lower, pointing to reduced speculative positioning rather than aggressive bets on an ETF-driven breakout.
Progress without immediate payoff
The latest S-1 amendment does not materially change Avalanche’s near-term outlook, but it reinforces that ETF discussions are still active. Grayscale’s continued engagement with regulators suggests the firm sees long-term potential in bringing AVAX exposure to traditional markets, even if approval remains uncertain and timelines unclear.
For now, the disconnect between regulatory progress and price performance stands out. While ETF filings are moving forward behind the scenes, AVAX remains weighed down by weak momentum and cautious investor positioning. Until participation and volume recover, the ETF narrative appears to be a slow-burning catalyst rather than an immediate driver of price upside.
