Bitwise Avalanche ETF Inches Closer to U.S. Market With Fresh S-1 Filing

TLDR:

• Bitwise has filed an S-1 with the SEC to launch a new Avalanche ETF for U.S. investors.
• The ETF will track the CME CF Avalanche–Dollar Reference Rate to determine daily NAV.
• Bitwise secured Delaware registration for the ETF before filing with the SEC.
• The ETF plans to issue shares in 10,000-unit baskets to authorized participants.

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The crypto ETF race now has added a new contender. Bitwise has officially filed an S-1 with the U.S. Securities and Exchange Commission (SEC) for a spot Avalanche ETF. 

The registration comes after Bitwise secured its Delaware incorporation, laying the legal groundwork for the trust. The move signals growing demand for Avalanche investment products in the U.S. market. I

Bitwise Avalanche ETF Structure and Objective

According to the SEC filing, the Bitwise Avalanche ETF aims to hold Avalanche directly and mirror its market value. 

The trust will calculate its net asset value using the CME CF Avalanche–Dollar Reference Rate – New York Variant. This benchmark aggregates trade data from major Avalanche trading platforms to create a reliable daily price.

The ETF will issue and redeem shares only in blocks of 10,000, referred to as baskets. These baskets can be created with either AVAX or the equivalent cash value. Authorized participants will handle these transactions, ensuring proper market function and liquidity.

Bitwise’s parent company has seeded the trust with initial capital to establish operations. This seed investment allows the trust to purchase AVAX ahead of public trading. 

Once approved, the shares are expected to be listed on a U.S. exchange under a yet-to-be-disclosed ticker.

The filing also confirms that the ETF will not be regulated as an investment company or a commodity pool. This structure mirrors other spot crypto ETFs that focus on holding the asset directly rather than using futures contracts.

SEC Filing and Next Steps

The SEC must now review the S-1 before the ETF can begin trading. Approval would allow Bitwise to issue shares continuously. The filing emphasizes that the trust involves the same market risks as direct investment in Avalanche.

The sponsor, Bitwise Investment Advisers, will charge a management fee based on total AVAX holdings. Investors will also pay customary brokerage fees when buying or selling shares. 

The prospectus warns that shares may trade at a premium or discount to NAV depending on market demand.

Bitwise expects this product to appeal to investors seeking regulated exposure to Avalanche. If cleared, the ETF could deepen AVAX’s reach within traditional finance channels. Traders and portfolio managers would gain a new tool for adding AVAX exposure without self-custody challenges.

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