# Grayscale Avalanche Staking ETF > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Grayscale Avalanche Staking ETF). ## Overview 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. ## Products & services • AVAX spot exposure through ETF shares • Staking of AVAX held by the trust • NAV based on a benchmark index • Creation and redemption of shares via authorized participants - **AVAX investment exposure** (70%) — Shares that track the value of AVAX held by the trust. - **Staking consideration** (20%) — AVAX rewards earned from staking the trust's holdings. - **Trust and sponsor fee structure** (10%) — Fees and expenses associated with operating the trust. - AVAX spot exposure through ETF shares - Staking of AVAX held by the trust - NAV based on a benchmark index - Creation and redemption of shares via authorized participants ## 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** (primary) — Create and redeem shares in exchange for AVAX or cash-like settlement mechanics. - **Liquidity Providers** (primary) — Support primary-market transactions and help maintain orderly share creation/redemption. - **Secondary-market investors** (primary) — Buy ETF shares to gain AVAX exposure through a listed security. - **Institutional allocators** (secondary) — Use the trust as a portfolio vehicle for digital asset exposure and operational convenience. - Authorized participants creating and redeeming shares - Liquidity providers facilitating primary-market activity - Secondary-market investors seeking AVAX exposure - Institutions using ETF wrappers for digital asset allocation ## 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. - United States domicile and fund structure - Global AVAX market exposure through digital asset trading platforms - Pricing references multiple international exchanges - Operational counterparties include custodians and staking providers ## 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 methodology** (short-term) — Shareholder returns and trading integrity depend on reliable pricing and benchmark selection. - **Expand staking participation** (short-term) — Staking can increase AVAX holdings and improve the trust's economic exposure. - **Preserve operational flexibility in digital asset markets** (medium-term) — The trust depends on market access, liquidity, and third-party infrastructure to function efficiently. - Track AVAX through a regulated trust structure - Use benchmark pricing for NAV and share valuation - Earn staking rewards on a portion of held AVAX - Rely on custodians and staking providers for execution - Support creations and redemptions through authorized participants ## 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. - **AVAX market price volatility** [high] — The trust holds AVAX directly, so changes in token price flow through to NAV and reported results. - **Staking liquidity and operational risk** [high] — Staked AVAX may be inaccessible for a period and the trust depends on third-party providers to execute staking. - **Digital asset market structure and pricing risk** [medium] — NAV depends on benchmark pricing from multiple trading platforms, which can vary by venue and liquidity. - **Regulatory and compliance risk** [medium] — Digital asset markets and staking arrangements are subject to evolving legal and compliance requirements. - AVAX price volatility directly drives NAV changes - Staking can reduce liquidity while assets are locked - Dependence on custodians and staking providers - Digital asset market access and pricing fragmentation - Regulatory and compliance risk in crypto markets ## Accounting The trust measures AVAX at fair value and uses a benchmark-based NAV methodology, so reported results are highly sensitive to pricing inputs and market selection. Staking rewards, sponsor fees paid in AVAX, and share creation/redemption activity all affect the quantity of AVAX held and can create realized and unrealized gains or losses in the financial statements. - **Fair value measurement of AVAX** — Changes in benchmark inputs can materially affect NAV and unrealized gains or losses. - **Staking consideration accounting** — Can increase assets and influence realized/unrealized results. - **Trade-date accounting for creations and redemptions** — Creates timing differences in reported assets and liabilities. - **Specific identification for realized gains and losses** — Affects realized gain/loss recognition and comparability across periods. - Fair value measurement of AVAX drives NAV and earnings - Benchmark pricing affects reported share value - Staking rewards increase AVAX holdings and assets - Sponsor fees paid in AVAX create realized transactions - Share creations/redemptions affect asset balances and timing --- *Last updated: 2026-06-16T22:56:19.050428+00:00*