Grayscale Investments continues with his efforts to introduce a spot Avalanche Exchange -Traded Fund (ETF) product in the market.
On March 27, Nasdaq applied to mention and trade the Grayscale Avalanche Trust as a stock market -bound fund at the US Securities and Exchange Commission (SEC).
Despite the ETF application, the Avax price in the last 24 hours has fallen by more than 7% to $ 20, according to the press, according to CryptoSlate’s facts.
Avalanche ETF
According to the submitThe aim of the fund is to reflect the market value of Avax – the native token of the avalanche -blockchain – based on a benchmark -index.
The persecution that although the product does not allow that investors hold Avax directly, the ETF offers a streamlined way to get exposure to the active. Nasdaq stated that ETF wants to provide this access with lower costs and fewer technical barriers compared to self-spices or the use of crypto exchanges.
The submission noted that CSC Delaware Trust Company will act as the trustee of the fund, and Coinbase Custody Trust Company will handle the guardian lists.
In the meantime, BNY Mellon is expected to take on the tasks of the administration and transfer of agent, while Foreside Fund Services will manage marketing. Coindesk Indices, Inc. Will provide the benchmark index to follow the Avax price.
It is possible that the ETF could transform the existing Avalanche Trust from Grayscale into a listed product. The to trust Manages around $ 1.7 million in assets and has an annual reimbursement of 2.5%.
In the meantime, Grayscale is not the only company that explores Avax ETFs. Earlier in the month, asset manager Vaneck also submitted paperwork to the SEC for a similar product, which indicates a wider trend of institutional interest in avalanche.
Emin Gün Sirer, founder and CEO of AVA Labs, welcomed The growing focus on Avax ETFs. He said these products are a fresh way for investors to communicate with advanced blockchain infrastructure without needing deep technical know-how.
