Grayscale Files Updated S-1 for Avalanche ETF Seeking SEC Approval

Highlights:

• Grayscale plans to stake 70% of AVAX holdings in its Avalanche ETF.
• The updated S-1 introduces key changes in tax, risk, and redemption structures.
• Grayscale aims to list the Avalanche ETF under the ticker “GAVX” on Nasdaq.

Grayscale Investments has filed a revised S-1 filing with the U.S. Securities and Exchange Commission, seeking to convert its existing Avalanche Trust into a spot ETF. Upon approval, this ETF would trade on Nasdaq under the ticker GAVX.

The latest filing presents significant changes and addresses the past feedback on regulations. The timing also coincides with the growing interest of other companies to offer similar AVAX-based ETFs. Bitwise and VanEck have also updated their submissions to incorporate staking rewards, creating competition.

This update introduces technical clarity rather than flashy new features. According to market experts, it indicates progress rather than delays in the SEC review process.

JUST IN: GRAYSCALE FILES AN UPDATED S-1 FOR ITS AVALANCHE (AVAX) ETF WITH THE U.S. SEC. pic.twitter.com/UD4Cne7Gmu

— The Moon Show (@TheMoonShow) December 24, 2025

Avalanche ETF Now Includes Staking Rewards Strategy

The most notable addition in this update is staking. Grayscale will invest up to 70% of the holdings of AVAX in the ETF. This is to create passive income for shareholders in the form of staking rewards. These earnings would be shared with the normal gains of the fund.

AVAX staking requires trust to receive rewards to assist in validating blockchain transactions. Since Avalanche operates on a proof-of-stake model, the reward system provides stable returns. This move introduces a different dimension to ETF investing, a growth and income combination.

In addition to staking, there are multiple operational changes in the filing. They involve modifications to in-kind creation and redemption systems. Grayscale also included clearer risk disclosures, updated tax language, and refreshed financial information for the Avalanche ETF. The sponsor of the trust is the Grayscale Investments Sponsors LLC.

Although the filing did not reveal management or staking fees, it did confirm that there is no waiver at this stage. This update is a response to the ongoing SEC engagement and does not indicate final approval.

Rising Competition and Market Response

VanEck has also filed an Avalanche ETF, which carries a 0.30% management fee. Its staking provider would be Coinbase Crypto Services. Similarly, Bitwise updated its proposal to include staking as institutions became increasingly interested.

JUST IN: BITWISE FILED AN S-1 AMENDMENT FOR ITS AVALANCHE ETF.

MANAGEMENT FEE SET AT 0.34% AND THE TICKER WILL BE “BAVA.” pic.twitter.com/hEPpZAmmSM

— The Moon Show (@TheMoonShow) November 27, 2025

At the moment, the Avalanche Trust by Grayscale is traded over-the-counter under the symbol AVAXFUN. A listing on the Nasdaq as an ETF would lead to broader exposure and increased liquidity. Retail investors as well as institutional investors would have a product of easy access.

Grayscale submitted its filing shortly after the SEC Crypto Task Force held a meeting with Ava Labs and industry organizations. The competition among ETFs is heating up, and a number of participants are positioning their strategies around staking rewards.

Despite the Avalanche ETF filing, the altcoin has failed to gain much momentum. As of this writing, AVAX is exchanging hands at around $12.08, down by more than 1% over the last 24 hours. The altcoin has been facing downward pressure, having declined by 10% on the monthly chart. Additionally, its market capitalization and trading volume have decreased to $5.20 billion and $280 million, respectively.