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Grayscale Avalanche Staking ETF

Grayscale Avalanche Staking ETF is a U.S.-based exchange-traded trust that holds AVAX, the native token of the Avalanche network. The trust is designed to provide investors with exposure to AVAX price movements and, through staking arrangements, to earn staking rewards in the form of additional AVAX.

Business

Share of revenue
AVAX investment exposure70 %

Shares that track the value of AVAX held by the trust.

Staking consideration20 %

AVAX rewards earned from staking the trust's holdings.

Trust and sponsor fee structure10 %

Fees and expenses associated with operating the trust.

Customers

The trust's investors are market participants seeking regulated exposure to Avalanche without directly holding or managing digital assets. Shares are created and redeemed by authorized participants and liquidity providers, while secondary-market investors buy the ETF shares for portfolio exposure, trading convenience, and custody simplification.

Authorized Participants

Create and redeem shares in exchange for AVAX or cash-like settlement mechanics.

Liquidity Providers

Support primary-market transactions and help maintain orderly share creation/redemption.

Secondary-market investors

Buy ETF shares to gain AVAX exposure through a listed security.

Institutional allocators

Use the trust as a portfolio vehicle for digital asset exposure and operational convenience.

Strategy

The trust's core strategy is to provide listed exposure to AVAX while using a benchmark index to determine NAV and share pricing. It also seeks to enhance holdings through staking, while relying on custodians and third-party staking providers to execute staking activities and manage operational mechanics.

Maintain accurate AVAX valuation and NAV methodologyShort term

Shareholder returns and trading integrity depend on reliable pricing and benchmark selection.

Expand staking participationShort term

Staking can increase AVAX holdings and improve the trust's economic exposure.

Preserve operational flexibility in digital asset marketsMedium term

The trust depends on market access, liquidity, and third-party infrastructure to function efficiently.

Geography

The trust is organized in the United States and operates as a U.S. investment vehicle. Its economic exposure is global because AVAX trades on international digital asset markets, and the trust references multiple trading platforms to determine pricing and fair value.

Risks

The trust is exposed to AVAX price volatility, which directly affects NAV and shareholder returns. It also faces operational and liquidity risks tied to staking, third-party service providers, digital asset market access, and the possibility that staked AVAX may be temporarily inaccessible during un-staking or withdrawal periods.

Sorted by severity
AVAX market price volatilityHigh

The trust holds AVAX directly, so changes in token price flow through to NAV and reported results.

Exposure: NAV and shareholder returns

Staking liquidity and operational riskHigh

Staked AVAX may be inaccessible for a period and the trust depends on third-party providers to execute staking.

Exposure: Asset accessibility and operational continuity

Digital asset market structure and pricing riskMedium

NAV depends on benchmark pricing from multiple trading platforms, which can vary by venue and liquidity.

Exposure: Fair value measurement

Regulatory and compliance riskMedium

Digital asset markets and staking arrangements are subject to evolving legal and compliance requirements.

Exposure: Market access and service-provider relationships

Accounting

Judgemental items
Fair value measurement of AVAX

NAV is derived from benchmark pricing and principal market selection, making valuation judgments central to reported results.

Impact: Changes in benchmark inputs can materially affect NAV and unrealized gains or losses.

Staking consideration accounting

Rewards are received in AVAX and may be distributed or retained, affecting holdings and income presentation.

Impact: Can increase assets and influence realized/unrealized results.

Trade-date accounting for creations and redemptions

Share issuance and redemption activity is recorded on trade date with settlement later, affecting receivables and payables.

Impact: Creates timing differences in reported assets and liabilities.

Specific identification for realized gains and losses

Sales of AVAX to pay expenses or fees are recognized using specific identification.

Impact: Affects realized gain/loss recognition and comparability across periods.

Publicly listed companies with a comparable business focus.

Last updated: 16/06/2026