Grayscale Avalanche Staking ETF

What they do

The Trust is a passive entity that holds AVAX and issues Creation Baskets (10,000 Share blocks) in exchange for AVAX deposits. It redeems shares through a redemption program initiated on March 11, 2026. Since March 12, 2026, it stakes its AVAX with third-party providers to earn Staking Consideration in additional AVAX. The Trust's investment objective is for the share value to reflect AVAX held, less expenses and other liabilities.

Revenue drivers

• AVAX holdings — The Trust's primary asset is AVAX, valued at fair value using the CoinDesk Avalanche Benchmark Rate. As of June 30, 2026, total assets were $4.3 million, all in AVAX.
• Staking rewards — The Trust stakes AVAX and earns Staking Consideration in additional AVAX, subject to network conditions and reward rates. This increases the Trust's AVAX holdings.
• Share creations — The Trust generates AVAX inflows through the issuance of baskets to Authorized Participants, which corresponds to the creation of new shares.
• Redemptions — The Trust redeems shares for AVAX, which reduces holdings. Redemption activity is not a revenue driver but affects the asset base and fee income potential.

Recent performance

As of June 30, 2026, the Trust reported total assets of $4.3 million and no liabilities. The Trust began staking on March 12, 2026, and has earned Staking Consideration since then, though the amount is not disclosed in the excerpt. The Trust initiated a redemption program on March 11, 2026, and shares began trading on NASDAQ on March 12, 2026. The 10-Q filed on August 7, 2026 is the first report since commencement of operations.

Strategy

The Trust is a passive vehicle with no leverage, derivatives, or active management. The stated strategy is to hold AVAX and reflect its value, less expenses, in the share price. It relies on staking to generate additional AVAX, with rewards distributed at the Sponsor's discretion. The Trust uses the CoinDesk Avalanche Benchmark Rate for NAV calculation as of October 1, 2025.

Risks

• AVAX price volatility — The Trust's assets are entirely in AVAX, whose price is volatile and could adversely affect the share value.
• Staking variability — Staking Consideration is not consistent and depends on network conditions, reward rates, and the portion staked, which can fluctuate.
• Liquidity and un-staking — Staked AVAX may be inaccessible for the time required to un-stake under Avalanche Network protocols, impacting redemptions.
• Third-party dependency — The Trust depends on the Custodian and third-party staking providers for staking activities, creating operational and counterparty risks.

Outlook

Management does not provide forward-looking guidance in the excerpts. The Trust expects to continue passive operations, issuing and redeeming baskets as authorized participants demand. Staking will continue, with rewards dependent on network parameters and the amount of AVAX staked. The Trust's performance will be driven by AVAX market prices and staking yields.