The price of Avalanche (AVAX) has witnessed a severe collapse, selling at roughly $20—down 86% from its all-time high of $146. This reduction occurs despite Grayscale’s recent filing to convert its Avalanche Trust into a spot ETF.
While the increase shows rising institutional interest, the AVAX price behavior reflects a market battling weak sentiment and larger adverse tendencies. Investors are wary, even as Avalanche’s long-term potential continues to gain attention.
The Avalanche price has fallen nearly 10% in the past 24 hours, with resistance at $21.50 and support near $19.50. This fall highlights the difficulty Avalanche confronts with traders as they become apprehensive about re-entering holdings.
Brief gains earlier in March were overshadowed by bigger sell-offs. Analysts see Avalanche’s troubles as part of a larger crypto decline, with traders searching for signs of revival under persistent market pressure.
AVAX and Grayscale ETF Filing
Grayscale sought to convert its Avalanche Trust into a spot ETF on March 27, 2025. The trust controls $1.76 million in assets, with each share representing around 0.49 AVAX. If authorized, the Avalanche ETF would list on Nasdaq, matching its price with AVAX through arbitrage, delivering a cost-effective choice for investors. This approach follows Grayscale’s success with Bitcoin and Ethereum ETFs, demonstrating increased institutional interest in cryptocurrencies.
Coinbase will operate as a custodian, while BNY Mellon will be the administrator. The filing comes after VanEck’s identical action, signifying growing competition in the crypto ETF industry. This initiative might boost Avalanche’s visibility and accessibility for traditional investors.
Despite the hype around Grayscale’s Avalanche ETF registration, AVAX’s market reaction has been lackluster. Investors are cautious about responding positively, especially with the possibility of institutional adoption through ETFs. This gloomy stance echoes larger concerns about the crypto industry, where altcoins like AVAX struggle to gain momentum under macroeconomic constraints and regulatory uncertainties.
The filing has provoked varied reactions among investors. While Emin Gün Sirer, founder of Ava Labs, has largely backed blockchain developments that span traditional banking and decentralized systems, traders remain skeptical. Many interpret the present price behavior as indicating inadequate trust in Avalanche’s short-term performance despite its long-term promise.
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