Bitwise Files S‑1 for Spot Avalanche ETF

Key Features of the Proposed ETF

Bitwise’s proposal calls for the fund to hold AVAX tokens outright, not via futures or derivatives. Custody is to be handled by Coinbase Custody Trust Company, with assets stored in segregated cold storage accounts.

The ETF shares would be issued and redeemed in large blocks known as “baskets.” The net asset value (NAV) would be tied to the CME CF Avalanche–USD Reference Rate, which is published daily by CF Benchmarks.

Bitwise emphasizes that this structure would allow investors, including institutions that often face regulatory, operational, or accounting constraints, to gain exposure to AVAX through standard brokerage accounts, bypassing the complexity of self‑custody, private wallets, or direct token handling.

Bitwise is not alone. VanEck earlier this year registered an Avalanche ETF in Delaware and filed for a spot AVAX ETF. Grayscale is in the process of converting its existing Avalanche Trust into a spot ETF, also with Nasdaq proposed as the listing venue. Neither of those filings has yet obtained final SEC approval.

Moreover, AVAX has had a challenging year in markets. The token is down significantly in 2025 compared with past highs. That price drop has made institutional demand somewhat cautious even amid speculation about regulatory change and crypto ETF expansion.

Regulatory and Market Context

The SEC in recent years approved spot Bitcoin and Ethereum ETFs. Bitwise itself obtained approval for a combined Bitcoin‑Ethereum spot ETF earlier in 2025. These precedents show that regulatory barriers are shifting, especially for large asset managers with robust custody and valuation mechanisms.

Still, SEC approvals do not happen overnight. The review of filings such as S‑1 or 19b‑4 can involve multiple stages. In past cases, even after tentative or delegated approvals, the SEC sometimes issues stays or delays. For example, Bitwise’s attempt to convert its Bitwise 10 Crypto Index Fund (which includes AVAX among other assets) into an ETF was approved and then immediately stayed for fuller Commission review.

Legal and regulatory consistency remains a concern. Firms seeking ETFs for tokens like AVAX must satisfy the agency’s requirements for investor protection, custody, valuation, market surveillance, and anti‑fraud controls. These criteria are under sharper scrutiny as more altcoin‑based ETF proposals accumulate.

If Bitwise secures SEC approval for its AVAX ETF, it could reshape institutional exposure in several ways:

• Access: Traditional investors could buy AVAX exposure through brokerage accounts, avoiding the friction of crypto exchanges and custody risk.
• Competition: Bitwise would join or perhaps lead in pushing non‑BTC/ETH token exposure into regulated products. This could accelerate similar filings for other tokens.
• Price impact: With regulated inflows, AVAX may see demand pressure, depending on how large the interest is and how many shares get issued.
• Regulatory signal: Approval would reinforce the trend toward wider acceptance of crypto‑asset ETFs beyond the largest few tokens.

Risks and Timeline

Even with strong groundwork, approval is uncertain. SEC review timelines typically extend for months. The agency may require amendments to filings, or even stay approvals, as in past cases. Market conditions (volatility, token regulation, custody incidents) could also influence the outcome.

Analysts expect that if conditions hold, decisions on many spot crypto ETFs, AVAX included, might come before the end of 2025. But nothing is guaranteed.

Final Thoughts

Bitwise’s filing for a spot Avalanche ETF bullets toward an important moment in crypto finance. It joins competing efforts from Grayscale, VanEck and others, under a regulatory landscape that is shifting but still highly guarded.

For investors and observers, the AVAX ETF contest represents more than exposure to another token: it tests how far institutional crypto inclusion can spread under evolving SEC standards.