On 28 May 2025, the United States Securities and Exchange Commission (US SEC) published Notice of Designation of a Longer Period for US SEC Action on a Proposed Rule Change to List and Trade Shares of Grayscale Avalanche Trust (AVAX) under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares) and thereby announced an extension of its deadline of 15 July 2025 to decide on a proposed rule change submitted by The Nasdaq Stock Market LLC. The rule change seeks approval to list and trade shares of the Grayscale Avalanche Trust (AVAX) under Nasdaq Rule 5711(d), a provision governing the listing of commodity-based trust shares. The US SEC has designated 15 July 2025 as the new date by which it must either approve, disapprove, or initiate proceedings to disapprove the proposal.
The Grayscale Avalanche Trust (AVAX) is a commodity-based trust intended to offer investors regulated exposure to Avalanche (AVAX), a Layer 1 proof-of-stake digital asset. While the US SEC’s release does not describe the trust in operational detail, its categorisation under Nasdaq Rule 5711(d) indicates it would function similarly to other single-asset crypto trusts previously filed by Grayscale, such as those for Bitcoin or Ethereum.
The proposed rule change was filed by Nasdaq on 27 March 2025 under Section 19(b)(1) of the United States Securities Exchange Act of 1934 and US SEC Rule 19b-4. It was published for public comment in the Federal Register on 16 February 2025. Under Section 19(b)(2) of the same Act, the US SEC had a 45-day statutory window, originally set to expire on 31 May 2025. The extension, announced in US SEC Release No. 34-103141, provides additional time to assess the proposed listing and the related market structure issues.
Timeline of Developments
On 16 February 2025, the proposed rule change was published for comment in the Federal Register (Release No. 102812, 90 FR 16022).
On 27 March 2025, Nasdaq Stock Market LLC filed the proposed rule change with the US SEC (SR-NASDAQ-2025-030). On 31 May 2025, Initial 45-day period from publication was set to expire.
On 28 May 2025, the US SEC extended the period for taking action to 15 July 2025 (Release No. 34-103141).
On 15 July 2025, US SEC can either approve, disapprove, or institute proceedings to determine whether to disapprove the proposed rule change.
The US SEC’s procedural extension does not imply a position on the substance of the application. Instead, it reflects the need for more time to evaluate the proposed rule change and the regulatory questions it presents. The extension allows for further consideration of any issues raised by commenters or identified by the US SEC during its ongoing review.
The proposed rule change continues to be evaluated within the framework of the United States Securities Exchange Act of 1934, specifically under Section 19(b)(2), which authorises the US SEC to extend the review period where appropriate. United States Rule 19b-4 governs the submission and review of such changes. Nasdaq Rule 5711(d), under which the AVAX Trust would be listed, is the applicable rule for commodity-based trust shares and has previously supported digital asset-based products.
All information about the filing, including comments and updates, is available on the official US SEC website under file number SR-NASDAQ-2025-030. The final decision on whether the Grayscale Avalanche Trust (AVAX) will be approved for listing is now expected by 15 July 2025.
(Source: https://www.sec.gov/files/rules/sro/nasdaq/2025/34-103141.pdf)
