Nasdaq Files to List Avalanche Crypto ETF for Trading
Published Date: 4/29/2025
Notice
Summary
Nasdaq wants to start trading shares of the VanEck Avalanche ETF, a new fund tied to the Avalanche cryptocurrency, under its special commodity-based rules. This means investors can buy and sell these shares on Nasdaq soon, opening up fresh ways to invest in digital assets. The proposal was filed in April 2025 and is now open for public comments before it goes live.
Analyzed Economic Effects
9 provisions identified: 4 benefits, 2 costs, 3 mixed.
New AVAX ETF Listed on Nasdaq
Nasdaq proposes to list and trade shares of the VanEck Avalanche ETF (tied to the AVAX token) under Nasdaq Rule 5711(d). The proposed filing was submitted April 9, 2025, and the fund is registered on a Form S-1 dated March 14, 2025; the Shares will not trade until the Registration Statement is effective.
Trading Hours and Pre/Post Risks
The Exchange will permit trading in the Shares from 4:00 a.m. to 8:00 p.m. Eastern Time. The Information Circular will warn that trading during pre-market and post-market sessions carries risks because an updated intraday indicative value (IIV) will not be calculated or publicly disseminated then.
NAV and IIV Transparency Rules
The Trust's net asset value (NAV) will be calculated once per day after 4:00 p.m. ET and published daily, and an intraday indicative value (IIV) will be updated every 15 seconds during the 9:30 a.m.–4:00 p.m. ET market session. The IIV uses the prior day's closing NAV as a base and is not a real-time NAV update.
Custody Protections for AVAX Holdings
A third-party AVAX Custodian will hold the Trust's AVAX in segregated cold storage addresses and will safeguard private keys; the custodian will not withdraw, loan, hypothecate, pledge or otherwise encumber the Trust's AVAX without the Trust's instruction. If the custody agreement ends, the Sponsor may appoint another custodian.
Staking May Add Rewards and Risks
The Sponsor may stake all or a portion of the Trust's AVAX with one or more staking providers and the Trust would receive staking rewards of AVAX tokens, which may be treated as income to the Trust. Staking activity is optional and may change the Trust's income or risk profile.
Disclosure of AVAX Market Limits
The Information Circular will state that there is no regulated source of last-sale information for AVAX and that the Commission has no jurisdiction over AVAX trading as a commodity. The Circular will also disclose fees and expenses described in the Trust's Registration Statement.
Trading Halts if IIV or Index Interrupted
The Exchange may halt trading in the Shares if the IIV or the value of the Index is not being disseminated as required; if the interruption persists past the trading day it occurred, the Exchange will halt trading no later than the beginning of the next trading day. Trading also may be halted for other market conditions the Exchange deems detrimental.
Surveillance via ISG and Coinbase Derivatives
Nasdaq notes it has a comprehensive surveillance-sharing arrangement through the Intermarket Surveillance Group (ISG) that allows it to obtain trading information from Coinbase Derivatives' AVAX futures market and other ISG members to help detect fraud or manipulation. The Exchange points to this as an 'other means' to assist surveillance.
Listing Thresholds and Prospectus Rules
The Exchange requires a minimum of 40,000 Shares outstanding at commencement of trading and will require members to deliver a prospectus to buyers of newly issued Shares prior to or concurrently with trade confirmation. The Information Circular will describe creation/redemption in Baskets of 25,000 Shares.
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