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Grayscale, which already operates an Avalanche Trust with a 2.5% management fee, filed for the new ETF as part of a broader push toward regulated investment vehicles for altcoins.
Avalanche’s native token (AVAX) tumbled nearly 10% on Friday, making it one of the worst-performing major cryptocurrencies, even as asset manager Grayscale moved to launch a spot Avalanche exchange-traded fund (ETF).
The decline came amid a broader market selloff triggered by fresh inflation data and concerns over new trade tariffs.
Bitcoin (BTC) fell nearly 4% in the past 24 hours to around $83,700, according to CoinGecko.
Among the top 20 cryptocurrencies by market capitalization, AVAX’s 9.5% drop was second only to Sui’s (SUI) 9.7% decline.
Grayscale, which already operates an Avalanche Trust with a 2.5% management fee, filed for the new ETF as part of a broader push toward regulated investment vehicles for altcoins.
If approved, the fund would directly hold AVAX and track its market price, offering traditional investors an easier way to gain exposure through conventional brokerage accounts. According to the filing, Coinbase Custody would serve as the ETF’s custodian.
The U.S. Securities and Exchange Commission (SEC) has not approved any spot altcoin ETFs beyond those tracking Ethereum’s native token, Ether (ETH).
However, Avalanche has attracted growing institutional interest. Earlier this month, VanEck filed an S-1 form for an Avalanche ETF. In February, Grayscale also sought approval for a Cardano (ADA) ETF – its first standalone investment vehicle for the token.
On Stocktwits, retail sentiment around Avalanche’s token improved but remained within ‘neutral territory’ accompanied by rising message volumes.
One user predicted a significant rebound, forecasting a 300% rally by year-end.
Another trader sees more downside ahead, expecting AVAX to fall to $9.
AVAX has dropped over 10% in the past 30 days and remains down 63% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Read also: Altcoins Plunge, Bitcoin Hits $85K After Inflation Data Rattles Crypto Market — Ethereum Drops Below $2K
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