TLDR
- Bitwise Files S-1 to Launch First-Ever Spot Avalanche ETF With AVAX Exposure
- Avalanche ETF From Bitwise Seeks SEC Nod for Direct AVAX Token Holdings
- Bitwise Avalanche ETF Aims to Bridge Crypto and Wall Street With AVAX Access
- Coinbase to Custody AVAX in Bitwise’s Newly Filed Spot Avalanche ETF
- Bitwise Joins ETF Race With AVAX-Backed Fund, Eyes Institutional Crypto Demand
Bitwise as officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission for its Avalanche ETF. This proposed exchange-traded fund seeks to offer direct exposure to AVAX, the native token of the Avalanche blockchain. The move reinforces Bitwise’s growing push into crypto-focused ETFs.
AVAX-Backed Structure and Regulatory Filing
Bitwise structured the Avalanche ETF to hold AVAX tokens directly rather than using synthetic instruments or derivatives. The filing confirms that Bitwise will calculate the fund’s net asset value (NAV) using the CME CF Avalanche–Dollar Reference Rate. The ETF will provide a regulated method of accessing Avalanche without the need to manage wallets or keys.
Bitwise outlined that each share of the Avalanche ETF would represent fractional ownership in a basket of 10,000 AVAX tokens. These baskets will settle either in cash or in AVAX, depending on creation or redemption. By using this approach, Bitwise aims to bridge traditional financial access with blockchain-native assets.
The SEC’s review process for the Avalanche ETF has now officially begun with this S-1 filing. If approved, the ETF would be listed on a national securities exchange, marking another milestone for crypto-based funds. This move aligns with Bitwise’s broader ETF strategy, including previous Bitcoin and Ethereum products.
Custody and Security Through Coinbase
Coinbase Custody Trust Company will act as the sole custodian for the Avalanche ETF’s digital assets. The custodian will store AVAX tokens in segregated cold storage accounts, minimizing risk and improving fund security. Bitwise emphasized that all Avalanche ETF holdings will be protected under New York banking regulations.
Using Coinbase ensures compliance with institutional-grade security standards required for crypto asset safekeeping. The arrangement helps Bitwise meet regulatory expectations while offering AVAX exposure through a conventional brokerage route. This adds a significant layer of confidence for market participants evaluating the Avalanche ETF.
Bitwise noted that the Avalanche ETF avoids exposure to lending, staking, or any form of yield-generating strategies. Instead, it solely focuses on physical token ownership. This model differentiates it from other crypto products using futures or leverage.
Market Context and Competitive Landscape
Bitwise’s filing comes shortly after it registered an Avalanche trust in Delaware as a preliminary step toward this fund. The Avalanche ETF adds to a growing list of asset managers vying to offer AVAX exposure through regulated products. Grayscale and VanEck are among those also pursuing similar initiatives.
Grayscale recently filed to convert its existing Avalanche Trust into a spot Avalanche ETF. VanEck submitted its own proposal for an AVAX-based fund. These developments highlight increasing interest in Layer 1 blockchain investment vehicles.
The Avalanche Foundation disclosed plans to raise $1 billion to support token treasuries. These treasuries will allow traditional fund structures like ETFs to purchase AVAX at discounted rates. Such initiatives signal expanding institutional demand for Avalanche-linked investment products.
The Bitwise Avalanche ETF marks a significant development in bridging AVAX and Wall Street. If approved, it would become one of the first spot ETFs to directly hold Avalanche assets. This aligns with Bitwise’s commitment to creating transparent, regulated access to the digital asset ecosystem.
