Bitwise Moves Forward with Avalanche ETF After SEC Filing and Trust Setup

TLDR

• Bitwise files S-1 with SEC for an Avalanche ETF after Delaware registration.
• Coinbase Custody to safeguard AVAX tokens in Bitwise’s proposed ETF.
• Institutional interest in Avalanche grows with filings from Bitwise and others.
• Bitwise ETF provides direct AVAX exposure, avoiding derivatives and wallet management.

Bitwise has officially filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for an Avalanche (AVAX) exchange-traded fund (ETF). This filing follows the company’s recent registration of the trust in Delaware, marking a step toward offering direct exposure to AVAX. Bitwise joins other major asset managers, such as VanEck and Grayscale, in the race to secure approval for an Avalanche-based ETF, underscoring growing institutional interest in AVAX.

Bitwise’s Avalanche ETF and Custody Structure

The Bitwise Avalanche ETF aims to provide direct exposure to AVAX by holding the cryptocurrency itself, rather than relying on derivatives. The trust will operate under a structure that allows investors to buy and sell shares of the ETF on a U.S. exchange. The shares will track the CME CF Avalanche–Dollar Reference Rate, published daily by CF Benchmarks, ensuring that the price of the ETF closely mirrors the market value of AVAX.

Coinbase Custody Trust Company will manage the custody of the AVAX tokens held by the trust. Coinbase Custody is regulated under New York banking law and is known for its secure cold storage solutions. The use of cold storage ensures that the tokens are protected from potential risks associated with online storage. The shares will be issued and redeemed in blocks of 10,000, known as baskets, and these will be settled either in cash or in AVAX tokens.

Avalanche ETFs Gaining Momentum Among Institutions

The filing by Bitwise adds to the growing momentum for Avalanche ETFs. Both VanEck and Grayscale have already submitted their own proposals for a spot AVAX ETF. VanEck filed its S-1 for the product in March 2025, while Grayscale’s proposal to convert its Avalanche Trust into a spot ETF was submitted in August 2025. These filings indicate that institutional demand for exposure to AVAX is on the rise.

Avalanche has gained popularity as a scalable blockchain platform supporting decentralized applications and smart contracts. It has a strong focus on scalability, low transaction fees, and environmental sustainability through its proof-of-stake consensus mechanism. Institutional investors are showing more interest in AVAX as a digital asset that can offer high potential returns. The recent increase in Avalanche’s treasury holdings is also seen as a sign of growing confidence in the platform’s future.

The Role of Coinbase Custody in ETF Security

Coinbase Custody is a key player in the Bitwise Avalanche ETF proposal. As the custodian of the AVAX tokens, Coinbase Custody will safeguard the assets in a highly secure, regulated environment. It will store the tokens in segregated accounts with cold storage protection, minimizing the risks of hacking or other security breaches. This level of security is crucial for attracting institutional investors who are cautious about the safety of digital assets.

Coinbase Custody is known for its reliability and has been used by several institutional investors to hold and protect digital assets. By partnering with Coinbase Custody, Bitwise ensures that the Avalanche ETF will meet the security standards required by the SEC for approval.

The Path Ahead for Avalanche ETFs

While Bitwise, VanEck, and Grayscale are all vying for approval from the SEC for their respective Avalanche ETFs, no final decision has been made yet. The SEC has yet to approve any non-Bitcoin or Ethereum spot ETFs, but these filings suggest a growing recognition of the demand for diversified exposure to digital assets. The approval of such ETFs would represent a shift in the regulatory landscape, opening the door for more institutional involvement in cryptocurrencies beyond Bitcoin and Ethereum.

As of now, the SEC has extended its review periods for several filings, including those from VanEck and Grayscale. The outcome of these filings will likely have a significant impact on the broader crypto investment landscape, particularly for institutional investors looking for regulated investment vehicles in the cryptocurrency space.

In the meantime, the price of AVAX remains volatile, with recent trading data showing it at $29.83, up 1.29% over the past 24 hours. Despite being well below its all-time high, the recovery of AVAX’s price signals growing interest from investors in the Avalanche ecosystem.

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