SecProbe.io

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  CORRESP

  March 10, 2026

VIA EDGAR

Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, D.C. 20549
Attn: Justin Dobbie

Re:	Grayscale Avalanche Trust (AVAX)*
Registration Statement on Form S-1 (File No. 333-289829)

REQUEST FOR ACCELERATION OF EFFECTIVENESS

Ladies and Gentlemen:

Pursuant to Rule 461 promulgated under the Securities Act of 1933, as amended, Grayscale Investments Sponsors, LLC, a Delaware limited liability company and the sponsor of Grayscale Avalanche Trust (AVAX) (the “Trust”), hereby requests that the Trust’s Registration Statement on Form S-1 (File No. 333-289829) (as amended) (the “Registration Statement”), be declared effective at 4:30 p.m., Eastern Time, on March 11, 2026, or as soon thereafter as practicable.

Once the Registration Statement is effective, please orally confirm the event with our counsel, Davis Polk & Wardwell LLP by calling Joseph A. Hall at (212) 450-4565 or Dan Gibbons at (212) 450-3222. We also respectfully request that a copy of the written order from the Commission verifying the effective time and date of the Registration Statement be sent to me by email at edward@grayscale.com and to our counsel, Joseph A. Hall at joseph.hall@davispolk.com or Dan Gibbons at dan.gibbons@davispolk.com.

*On March 11, 2026, the Registrant intends to change its name from “Grayscale Avalanche Trust (AVAX)” to “Grayscale Avalanche Staking ETF.”

     Very truly yours,

GRAYSCALE INVESTMENTS SPONSORS, LLC,
as Sponsor of Grayscale Avalanche Trust (AVAX)

     By:

     /s/ Craig Salm

     Name:

     Craig Salm

     Title:

     Chief Legal Officer

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     Daniel P. Gibbons

+1 212 450 3222

dan.gibbons@davispolk.com

     Davis Polk & Wardwell llp

450 Lexington Avenue
New York, NY 10017

davispolk.com

     March  6, 2026

     Re:

     Grayscale Avalanche Trust (AVAX)
Amendment No. 5 to Registration Statement on Form S-1
Filed March 2, 2026
File No. 333-289829

   Division of Corporation Finance

Office of Crypto Assets

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

     Att'n:

     David Lin

     Sandra Hunter Berkheimer

Ladies and Gentlemen:

On behalf of our client, Grayscale Investments Sponsors, LLC, a Delaware limited liability company and the sponsor (the “Sponsor”) of Grayscale Avalanche Trust (AVAX) (the “Trust”), this letter sets forth the Sponsor’s responses to the comment letter of the staff (the “Staff”) of the Division of Corporation Finance of the Securities and Exchange Commission (the “Commission”) dated March 2, 2026, relating to the Trust’s Amendment No. 5 to the Registration Statement on Form S-1. The Sponsor has revised the Registration Statement and is filing Amendment No. 6 to the Registration Statement (as amended, the “Registration Statement”) together with this response letter.

For your convenience, we have reproduced the Staff’s comments preceding the Sponsor’s responses below. All capitalized terms used and not defined herein shall have the meaning given to them in the Registration Statement.

Amendment No. 5 to Registration Statement on Form S-1

General

1.We note your response to prior comment 1 that you "expect[] the Staking Condition to be satisfied prior to the listing of the Shares on NASDAQ." Please revise your registration statement to provide a materially complete description of your planned staking program, including your planned staking policy.

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  Response: The Sponsor has revised the disclosure throughout the Registration Statement in response to the Staff’s comment.

Risk Factors
Risk Factors Related to Potential Conflicts of Interest
A single shareholder may own a majority of the Shares, page 70

2.We note your revised disclosure on page 70 that "[t]o the knowledge of the Sponsor, a single shareholder may hold a majority of the Shares representing ownership in the Trust." To the extent a single shareholder holds a majority of the Shares representing ownership in the Trust, please revise to disclose the security ownership of certain beneficial owners pursuant to Item 403 of Regulation S-K or advise.

Response: The Sponsor has revised the disclosure on pages 70 and 74 of the Registration Statement in response to the Staff’s comment.

Business
Expenses; Sales of AVAX
Hypothetical Expense Example, page 112

3.Please update the table on page 113 to include the Sponsor's Fee.

Response: The Sponsor has revised the disclosure on page 114 of the Registration Statement in response to the Staff’s comment.

* * *

In connection with its response to the Staff’s comments, the Sponsor acknowledges that the Sponsor and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff.

Please do not hesitate to contact Joseph Hall, at (212) 450-4565 or joseph.hall@davispolk.com, or me, at (212) 450-3222 or dan.gibbons@davispolk.com, with any questions you may have with respect to the foregoing.

Very truly yours,

/s/ Dan Gibbons

Dan Gibbons

     March 6, 2026

     2

     draft

     cc:

     Edward McGee

     Craig Salm

     Jake Karlsruher

     Joseph A. Hall

     Davis Polk & Wardwell LLP

     March 6, 2026

     3

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     Daniel P. Gibbons

+1 212 450 3222

dan.gibbons@davispolk.com

     Davis Polk & Wardwell llp

450 Lexington Avenue
New York, NY 10017

davispolk.com

     March 2, 2026

     Re:

     Grayscale Avalanche Trust (AVAX)
Amendment No. 4 to Registration Statement on Form S-1
Filed February 19, 2026
File No. 333-289829

   Division of Corporation Finance

Office of Crypto Assets

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

     Att'n:

     David Lin

     Sandra Hunter Berkheimer

Ladies and Gentlemen:

On behalf of our client, Grayscale Investments Sponsors, LLC, a Delaware limited liability company and the sponsor (the “Sponsor”) of Grayscale Avalanche Trust (AVAX) (the “Trust”), this letter sets forth the Sponsor’s responses to the comment letter of the staff (the “Staff”) of the Division of Corporation Finance of the Securities and Exchange Commission (the “Commission”) dated February 25, 2026, relating to the Trust’s Amendment No. 4 to the Registration Statement on Form S-1. The Sponsor has revised the Registration Statement and is filing Amendment No. 5 to the Registration Statement (as amended, the “Registration Statement”) together with this response letter.

For your convenience, we have reproduced the Staff’s comments preceding the Sponsor’s responses below. All capitalized terms used and not defined herein shall have the meaning given to them in the Registration Statement.

Amendment No. 4 to Registration Statement on Form S-1

General

1.We note your disclosure that the Trust Agreement provides that the Trust may engage in Staking, but only if the Staking Condition has been satisfied. Please tell us whether you expect the Staking Condition to be satisfied prior to, simultaneously with, or immediately after commencement of the offering and confirm that to the extent the Sponsor causes the Trust to engage in Staking prior to or in connection with the commencement of this offering, you will revise your disclosure accordingly prior to launch.

Response: The Sponsor expects the Staking Condition to be satisfied prior to the listing of the Shares on NASDAQ, and the Sponsor expects to cause the Trust to engage in Staking in connection with the commencement of the offering following satisfaction of the Staking Condition. To the extent the

     draft

  Sponsor causes the Trust to engage in Staking in connection with the commencement of the offering, the Sponsor will accordingly revise its disclosure prior to launch, to state that the Staking Condition has been satisfied and the Trust will engage in Staking.

2.We note your disclosure throughout that "[t]he approximate percentage of the Trust's AVAX that is staked each day would be reported the following day" (emphasis added) on your website. Please confirm that the actual percentage of the Trust's AVAX that is staked will be disclosed on the Trust's website and revise your disclosure accordingly or explain.

Response: The Sponsor has revised the disclosure on pages 5, 28, 66, and 129 of the Registration Statement in response to the Staff’s comment.

* * *

In connection with its response to the Staff’s comments, the Sponsor acknowledges that the Sponsor and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff.

Please do not hesitate to contact Joseph Hall, at (212) 450-4565 or joseph.hall@davispolk.com, or me, at (212) 450-3222 or dan.gibbons@davispolk.com, with any questions you may have with respect to the foregoing.

Very truly yours,

/s/ Dan Gibbons

Dan Gibbons

     cc:

     Edward McGee

     Craig Salm

     Jake Karlsruher

     Joseph A. Hall

     Davis Polk & Wardwell LLP

     March 2, 2026

     2

March 2, 2026
Edward McGee
Chief Financial Officer
Grayscale Avalanche Trust (AVAX)
c/o Grayscale Investments Sponsors, LLC
290 Harbor Drive, 4th Floor
Stamford, CT 06902
Re:Grayscale Avalanche Trust (AVAX)
Amendment No. 5 to Registration Statement on Form S-1
Filed March 2, 2026
File No. 333-289829
Dear Edward McGee:
            We have reviewed your amended registration statement and have the following
comments.
            Please respond to this letter by amending your registration statement and providing the
requested information. If you do not believe a comment applies to your facts and circumstances
or do not believe an amendment is appropriate, please tell us why in your response.
            After reviewing any amendment to your registration statement and the information you
provide in response to this letter, we may have additional comments. Unless we note otherwise,
any references to prior comments are to comments in our February 25, 2026 letter.
Amendment No. 5 to Registration Statement on Form S-1
General
1.We note your response to prior comment 1 that you "expect[] the Staking Condition to be
satisfied prior to the listing of the Shares on NASDAQ." Please revise your registration
statement to provide a materially complete description of your planned staking program,
including your planned staking policy.
Risk Factors
Risk Factors Related to Potential Conflicts of Interest
A single shareholder may own a majority of the Shares, page 70
We note your revised disclosure on page 70 that "[t]o the knowledge of the Sponsor, a
single shareholder may hold a majority of the Shares representing ownership in the
Trust." To the extent a single shareholder holds a majority of the Shares representing 2.

March 2, 2026
Page 2
ownership in the Trust, please revise to disclose the security ownership of certain
beneficial owners pursuant to Item 403 of Regulation S-K or advise.
Business
Expenses; Sales of AVAX
Hypothetical Expense Example, page 112
3.Please update the table on page 113 to include the Sponsor's Fee.
            Please contact Mark Brunhofer at 202-551-3638 or Jason Niethamer at 202-551-3855 if
you have questions regarding comments on the financial statements and related matters. Please
contact Sonia Bednarowski at 202-551-3666 or Sandra Hunter Berkheimer at 202-551-3758 with
any other questions.
Sincerely,
Division of Corporation Finance
Office of Crypto Assets
cc:Daniel P. Gibbons

February 25, 2026
Edward McGee
Chief Financial Officer
Grayscale Avalanche Trust (AVAX)
c/o Grayscale Investments Sponsors, LLC
290 Harbor Drive, 4th Floor
Stamford, CT 06902
Re:Grayscale Avalanche Trust (AVAX)
Amendment No. 4 to Registration Statement on Form S-1
Filed February 19, 2026
File No. 333-289829
Dear Edward McGee:
            We have reviewed your amended registration statement and have the following
comments.
            Please respond to this letter by amending your registration statement and providing the
requested information. If you do not believe a comment applies to your facts and circumstances
or do not believe an amendment is appropriate, please tell us why in your response.
            After reviewing any amendment to your registration statement and the information you
provide in response to this letter, we may have additional comments.
Amendment No. 4 to Registration Statement on Form S-1
General
1.We note your disclosure that the Trust Agreement provides that the Trust may engage in
Staking, but only if the Staking Condition has been satisfied. Please tell us whether you
expect the Staking Condition to be satisfied prior to, simultaneously with, or immediately
after commencement of the offering and confirm that to the extent the Sponsor causes the
Trust to engage in Staking prior to or in connection with the commencement of this
offering, you will revise your disclosure accordingly prior to launch.
2.We note your disclosure throughout that "[t]he approximate  percentage of the Trust's
AVAX that is staked each day would be reported the following day" (emphasis added)
on your website. Please confirm that the actual percentage of the Trust's AVAX that is
staked will be disclosed on the Trust's website and revise your disclosure accordingly or
explain.

February 25, 2026
Page 2
            Please contact Mark Brunhofer at 202-551-3638 or Jason Niethamer at 202-551-3855 if
you have questions regarding comments on the financial statements and related matters. Please
contact David Lin at 202-551-3552 or Sandra Hunter Berkheimer at 202-551-3758 with any
other questions.
Sincerely,
Division of Corporation Finance
Office of Crypto Assets
cc:Daniel P. Gibbons

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     Daniel P. Gibbons

+1 212 450 3222

dan.gibbons@davispolk.com

     Davis Polk & Wardwell llp

450 Lexington Avenue
New York, NY 10017

davispolk.com

     January 29, 2026

     Re:

     Grayscale Avalanche Trust (AVAX)
Amendment No. 2 to Registration Statement on Form S-1
Filed December 23, 2025
File No. 333-289829

   Division of Corporation Finance

Office of Crypto Assets

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

     Att'n:

     David Lin

     Sandra Hunter Berkheimer

Ladies and Gentlemen:

On behalf of our client, Grayscale Investments Sponsors, LLC, a Delaware limited liability company and the sponsor (the “Sponsor”) of Grayscale Avalanche Trust (AVAX) (the “Trust”), this letter sets forth the Sponsor’s responses to the comment letter of the staff (the “Staff”) of the Division of Corporation Finance of the Securities and Exchange Commission (the “Commission”) dated January 23, 2026, relating to the Trust’s Amendment No. 2 to the Registration Statement on Form S-1. The Sponsor has revised the Registration Statement and is filing Amendment No. 3 to the Registration Statement (as amended, the “Registration Statement”) together with this response letter.

For your convenience, we have reproduced the Staff’s comments preceding the Sponsor’s responses below. All capitalized terms used and not defined herein shall have the meaning given to them in the Registration Statement.

Amendment No. 2 to Registration Statement on Form S-1

Forward-Looking Statements, page ii

1.We note your disclosure that "neither the Trust, the Sponsor, nor any other person
assumes responsibility for the accuracy and completeness of any of these forwardlooking
statements." Please revise your disclosure as it is not appropriate to disclaim
responsibility for disclosure in your registration statement.

Response: The Sponsor has revised the disclosure on page iv of the Registration Statement in response to the Staff’s comment.

     draft

  Prospectus Summary
Trust Overview, page 1

2.We note your statement in the second full paragraph on page 2 that prior to the listing of
the Shares on NASDAQ, the Sponsor intends to change the Index to CoinDesk AVAX CCIXber Reference Rate. We also note that your website (at https://www.grayscale.com/funds/grayscale-avalanche-trust) states that "[a]s of 10/1/2025 the Trust tracks CoinDesk AVAX CCIXber Reference Rate, prior to this date the Trust tracked the CoinDesk Avalanche Reference Rate." Please revise to reconcile and/or clarify your disclosures, as appropriate.

Response: The Sponsor has revised the disclosure on page 2 of the Registration Statement in response to the Staff’s comment.

Staking, page 1

3.We note your disclosure in the first full paragraph on page 5 that the Sponsor, on behalf of the Trust, may be able to enter into other financing arrangements or implement other mechanisms to manage AVAX liquidity constraints, including entering into short-term financing arrangements with its Custodian to provide AVAX to the Trust for settlement of trades with the Trust's Liquidity Provider(s), if necessary. Please expand to discuss in greater detail how such short-term financing arrangements will operate, to the extent information is reasonably available.

Response: The Sponsor has revised the disclosure on pages 5, 66 and 131 of the Registration Statement in response to the Staff’s comment.

4.Please revise to update your references on pages 5, 67 and 133 to NASDAQ's "proposed"
generic listing standards.

Response: The Sponsor has revised the disclosure on pages 5, 66 and 132 of the Registration Statement in response to the Staff’s comment.

Risk Factors
Risk Factors Related to Digital Assets
Staking may prove unattractive to validators..., page 28

5.We note that in response to prior comment 2, you have included disclosure in the last paragraph of this risk factor that the Sponsor generally will stake as much of the Trust's AVAX as is practicable (i.e., up to 100%) at all times, with the remainder of the Trust's AVAX remaining unstaked. While your revised disclosure quantifies the maximum amount of the Trust's AVAX that generally will be staked at all times, it does not appear to quantify or provide a range for the expected percentage of the Trust's AVAX that will remain unstaked in the ordinary course. Please revise to quantify or provide a range for the expected percentage of your assets to be held in the Liquidity Sleeve in the ordinary course, or explain why you are unable to do so.

Response: The Sponsor has revised the disclosure on pages 5, 28 and 131 of the Registration Statement in response to the Staff’s comment.

     January 29, 2026

     2

     draft

  Risk Factors Related to the Trust and the Shares
The Trust relies on third-party service providers to perform certain functions essential to the affairs of the Trust..., page 46

6.We note your disclosure that "the SEC has released proposed amendments to Rule 206(4)-2 that, if enacted as proposed, would amend the definition of a 'qualified custodian' under Rule 206(4)-2(d)(6)." Please revise to update the status of the proposed amendments you reference.

Response: The Sponsor has revised the disclosure on page 45 of the Registration Statement in response to the Staff’s comment.

The lack of full insurance and shareholders' limited rights of legal recourse..., page 49

7.Please disclose here, if accurate, that the insurance and capital reserves maintained by the Custodian, Coinbase Custody Trust Company, LLC, are shared among all of its customers and therefore not specific to the Trust.

Response: The Sponsor has revised the disclosure on pages 48 and 121 of the Registration Statement in response to the Staff’s comment.

Business
Legal Proceedings, page 126

8.Please revise your disclosure related to the May 19, 2025 complaint to include the amounts Genesis Capital and Genesis Asia are seeking to recover. To the extent material, please also revise to include information regarding the corresponding legal complaint filed in the Delaware Chancery Court.

Response: The Sponsor has revised the disclosure on page 124 of the Registration Statement in response to the Staff’s comment.

* * *

In connection with its response to the Staff’s comments, the Sponsor acknowledges that the Sponsor and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff.

Please do not hesitate to contact Joseph Hall, at (212) 450-4565 or joseph.hall@davispolk.com, or me, at (212) 450-3222 or dan.gibbons@davispolk.com, with any questions you may have with respect to the foregoing.

Very truly yours,

/s/ Dan Gibbons

Dan Gibbons

     January 29, 2026

     3

     draft

     cc:

     Edward McGee

     Craig Salm

     Jake Karlsruher

     Joseph A. Hall

     Davis Polk & Wardwell LLP

     January 29, 2026

     4

January 23, 2026
Edward McGee
Chief Financial Officer
Grayscale Avalanche Trust (AVAX)
c/o Grayscale Investments Sponsors, LLC
290 Harbor Drive, 4th Floor
Stamford, CT 06902
Re:Grayscale Avalanche Trust (AVAX)
Amendment No. 2 to Registration Statement on Form S-1
Filed December 23, 2025
File No. 333-289829
Dear Edward McGee:
            We have reviewed your amended registration statement and have the following
comments.
            Please respond to this letter by amending your registration statement and providing the
requested information. If you do not believe a comment applies to your facts and circumstances
or do not believe an amendment is appropriate, please tell us why in your response.
            After reviewing any amendment to your registration statement and the information you
provide in response to this letter, we may have additional comments. Unless we note otherwise,
any references to prior comments are to comments in our December 4, 2025 letter.
Amendment No. 2 to Registration Statement on Form S-1
Forward-Looking Statements, page ii
1.We note your disclosure that "neither the Trust, the Sponsor, nor any other person
assumes responsibility for the accuracy and completeness of any of these forward-
looking statements." Please revise your disclosure as it is not appropriate to disclaim
responsibility for disclosure in your registration statement.
Prospectus Summary
Trust Overview, page 1
We note your statement in the second full paragraph on page 2 that prior to the listing of
the Shares on NASDAQ, the Sponsor intends to  change the Index to CoinDesk AVAX
CCIXber Reference Rate. We also note that your website
(at https://www.grayscale.com/funds/grayscale-avalanche-trust) states that "[a]s of 2.

January 23, 2026
Page 2
10/1/2025 the Trust tracks CoinDesk AVAX CCIXber Reference Rate, prior to this date
the Trust tracked the CoinDesk Avalanche Reference Rate." Please revise to reconcile
and/or clarify your disclosures, as appropriate.
Staking, page 3
3.We note your disclosure in the first full paragraph on page 5 that the Sponsor, on behalf
of the Trust, may be able to enter into other financing arrangements or implement other
mechanisms to manage AVAX liquidity constraints, including entering into short-term
financing arrangements with its Custodian to provide AVAX to the Trust for settlement
of trades with the Trust's Liquidity Provider(s), if necessary. Please expand to discuss in
greater detail how such short-term financing arrangements will operate, to the extent
information is reasonably available.
4.Please revise to update your references on pages 5, 67 and 133 to NASDAQ's "proposed"
generic listing standards.
Risk Factors
Risk Factors Related to Digital Assets
Staking may prove unattractive to validators..., page 28
5.We note that in response to prior comment 2, you have included disclosure in the last
paragraph of this risk factor that the Sponsor generally will stake as much of the Trust's
AVAX as is practicable (i.e., up to 100%) at all times, with the remainder of the Trust's
AVAX remaining unstaked. While your revised disclosure quantifies the maximum
amount of the Trust's AVAX that generally will be staked at all times, it does not appear
to quantify or provide a range for the expected percentage of the Trust's AVAX that will
remain unstaked in the ordinary course. Please revise to quantify or provide a range for
the expected percentage of your assets to be held in the Liquidity Sleeve in the ordinary
course, or explain why you are unable to do so.
Risk Factors Related to the Trust and the Shares
The Trust relies on third-party service providers to perform certain functions essential to the
affairs of the Trust..., page 46
6.We note your disclosure that "the SEC has released proposed amendments to Rule
206(4)-2 that, if enacted as proposed, would amend the definition of a 'qualified
custodian' under Rule 206(4)-2(d)(6)." Please revise to update the status of the proposed
amendments you reference.
The lack of full insurance and shareholders' limited rights of legal recourse..., page 49
7.Please disclose here, if accurate, that the insurance and capital reserves maintained by the
Custodian, Coinbase Custody Trust Company, LLC, are shared among all of its
customers and therefore not specific to the Trust.

January 23, 2026
Page 3
Business
Legal Proceedings, page 126
8.Please revise your disclosure related to the May 19, 2025 complaint to include the
amounts Genesis Capital and Genesis Asia are seeking to recover. To the extent material,
please also revise to include information regarding the corresponding legal complaint
filed in the Delaware Chancery Court.
            Please contact David Irving at 202-551-3321 or Mark Brunhofer at 202-551-3638 if you
have questions regarding comments on the financial statements and related matters. Please
contact David Lin at 202-551-3552 or Sandra Hunter Berkheimer at 202-551-3758 with any
other questions.
Sincerely,
Division of Corporation Finance
Office of Crypto Assets
cc:Daniel P. Gibbons

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     Daniel P. Gibbons

+1 212 450 3222

dan.gibbons@davispolk.com

     Davis Polk & Wardwell llp

450 Lexington Avenue
New York, NY 10017

davispolk.com

     December 23, 2025

     Re:

     Grayscale Avalanche Trust (AVAX)
Amendment No. 1 to Registration Statement on Form S-1
Filed October 2, 2025
File No. 333-289829

   Division of Corporation Finance

Office of Crypto Assets

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

     Att'n:

     David Lin

     Sandra Hunter Berkheimer

Ladies and Gentlemen:

On behalf of our client, Grayscale Investments Sponsors, LLC, a Delaware limited liability company and the sponsor (the “Sponsor”) of Grayscale Avalanche Trust (AVAX) (the “Trust”), this letter sets forth the Sponsor’s responses to the comment letter of the staff (the “Staff”) of the Division of Corporation Finance of the Securities and Exchange Commission (the “Commission”) dated December 4, 2025, relating to the Trust’s Amendment No. 1 to the Registration Statement on Form S-1. The Sponsor has revised the Registration Statement and is filing Amendment No. 2 to the Registration Statement (as amended, the “Registration Statement”) together with this response letter.

For your convenience, we have reproduced the Staff’s comments preceding the Sponsor’s responses below. All capitalized terms used and not defined herein shall have the meaning given to them in the Registration Statement.

Amendment No. 1 to Registration Statement on Form S-1

Description of the Shares
Staking Arrangements and Provider-Facilitated Staking Model, page 127

1.Please revise this section to clarify whether any fee the Sponsor may be entitled to receive in connection with the Staking Arrangements (i.e., in the form of the Sponsor's Staking Portion) will be payable out of the Staking Consideration that would otherwise be earned by the Trust. Also, please make corresponding revisions to your disclosure in the prospectus summary, as appropriate.

     draft

  Response: The Sponsor has revised the disclosure on page 5 and 133 of the Registration Statement in response to the Staff’s comment.

Prospectus Summary
Staking, page 3

2.You disclose here that the Sponsor may seek to stake as much of the Trust's AVAX as is practicable (i.e., up to 100%) at all times. We also note your risk factor disclosure on page 28 that liquidity for redemptions must be managed through unstaked balances, including the Liquidity Sleeve and/or by laddering staking terms in light of the two week minimum validation period. Please revise your disclosure here to explain whether and to what extent you anticipate laddering staking terms and/or utilizing a Liquidity Sleeve to manage liquidity. Please also quantify or provide a range for the expected percentage of your assets to be held in the Liquidity Sleeve in
the ordinary course, or explain why you are unable to do so.

Response: The Sponsor has revised the disclosure on page 29 of the Registration Statement in response to the Staff’s comment.

* * *

In connection with its response to the Staff’s comments, the Sponsor acknowledges that the Sponsor and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comments, action or absence of action by the Staff.

Please do not hesitate to contact Joseph Hall, at (212) 450-4565 or joseph.hall@davispolk.com, or me, at (212) 450-3222 or dan.gibbons@davispolk.com, with any questions you may have with respect to the foregoing.

Very truly yours,

/s/ Dan Gibbons

Dan Gibbons

     cc:

     Edward McGee

     Craig Salm

     Jake Karlsruher

     Joseph A. Hall

     Davis Polk & Wardwell LLP

     December [23], 2025

     2

December 4, 2025
Edward McGee
Chief Financial Officer
Grayscale Avalanche Trust (AVAX)
c/o Grayscale Investments Sponsors, LLC
290 Harbor Drive, 4th Floor
Stamford, CT 06902
Re:Grayscale Avalanche Trust (AVAX)
Amendment No. 1 to Registration Statement on Form S-1
Filed October 2, 2025
File No. 333-289829
Dear Edward McGee:
            We have reviewed your amended registration statement and have the following
comments.
            Please respond to this letter by amending your registration statement and providing
the requested information. If you do not believe a comment applies to your facts and
circumstances or do not believe an amendment is appropriate, please tell us why in your
response.
            After reviewing any amendment to your registration statement and the information
you provide in response to this letter, we may have additional comments.
Amendment No. 1 to Registration Statement on Form S-1
Description of the Shares
Staking Arrangements and Provider-Facilitated Staking Model, page 127
1.Please revise this section to clarify whether any fee the Sponsor may be entitled to
receive in connection with the Staking Arrangements (i.e., in the form of the Sponsor's
Staking Portion) will be payable out of the Staking Consideration that would
otherwise be earned by the Trust. Also, please make corresponding revisions to your
disclosure in the prospectus summary, as appropriate.

December 4, 2025
Page 2
Prospectus Summary
Staking, page 3
2.You disclose here that the Sponsor may seek to stake as much of the Trust's AVAX as
is practicable (i.e., up to 100%) at all times. We also note your risk factor disclosure
on page 28 that liquidity for redemptions must be managed through unstaked
balances, including the Liquidity Sleeve and/or by laddering staking terms in light of
the two week minimum validation period. Please revise your disclosure here to
explain whether and to what extent you anticipate laddering staking terms and/or
utilizing a Liquidity Sleeve to manage liquidity. Please also quantify or provide a
range for the expected percentage of your assets to be held in the Liquidity Sleeve in
the ordinary course, or explain why you are unable to do so.
            Please contact David Irving at 202-551-3321 or Mark Brunhofer at 202-551-3638 if
you have questions regarding comments on the financial statements and related
matters. Please contact David Lin at 202-551-3552 or Sandra Hunter Berkheimer at 202-551-
3758 with any other questions.
Sincerely,
Division of Corporation Finance
Office of Crypto Assets
cc:Daniel P. Gibbons

<SEC-DOCUMENT>0001193125-25-228680.txt : 20261014
<SEC-HEADER>0001193125-25-228680.hdr.sgml : 20261014
<ACCEPTANCE-DATETIME>20251002172738
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-25-228680
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20251002

FILER:

	COMPANY DATA:
		COMPANY CONFORMED NAME:			Grayscale Avalanche Trust (AVAX)
		CENTRAL INDEX KEY:			0002035053
		STANDARD INDUSTRIAL CLASSIFICATION:	 [6221]
		ORGANIZATION NAME:           	09 Crypto Assets
		EIN:				996715858
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:
		STREET 1:		290 HARBOR DRIVE
		STREET 2:		4TH FLOOR
		CITY:			STAMFORD
		STATE:			CT
		ZIP:			06902
		BUSINESS PHONE:		212-668-1427

	MAIL ADDRESS:
		STREET 1:		290 HARBOR DRIVE
		STREET 2:		4TH FLOOR
		CITY:			STAMFORD
		STATE:			CT
		ZIP:			06902

	FORMER COMPANY:
		FORMER CONFORMED NAME:	Grayscale Avalanche Trust (AVAX)
		DATE OF NAME CHANGE:	20240823
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>2
<FILENAME>filename2.pdf
<TEXT>
<PDF>
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September 22, 2025
Edward McGee
Chief Financial Officer
Grayscale Avalanche Trust (AVAX)
c/o Grayscale Investments Sponsors, LLC
290 Harbor Drive, 4th Floor
Stamford, CT 06902
Re:Grayscale Avalanche Trust (AVAX)
Registration Statement on Form S-1
Filed August 25, 2025
File No. 333-289829
Dear Edward McGee:
            We have reviewed your registration statement and have the following comments.
            Please respond to this letter by amending your registration statement and providing
the requested information. If you do not believe a comment applies to your facts and
circumstances or do not believe an amendment is appropriate, please tell us why in your
response.
            After reviewing any amendment to your registration statement and the information
you provide in response to this letter, we may have additional comments.
Registration Statement on Form S-1
General
1.To the extent that you intend to use a fact sheet, please provide us with a copy for our
review.
Cover Page
2.Please include disclosure regarding creation of the initial basket(s) and name the party
acting as statutory underwriter in that transaction. Please also disclose the price at
which the shares are being offered as required by Item 501(b)(3) of Regulation S-K.
Risk Factors, page 22
Please tell us how you considered including a risk factor disclosing the risk that a
malicious actor could compromise one or more subnets running on the Avalanche 3.

September 22, 2025
Page 2
Network and any risks attendant to the separate security measures of such subnet(s),
including any consequential impact upon the public's perception of the Avalanche
Network's security level.
The trading prices of many digital assets, including AVAX, have experienced extreme
volatility in recent periods, page 22
4.Please revise to provide quantitative price disclosure addressing the volatility of
AVAX over the past several years. In this regard, we note you include a cross-
reference in the second paragraph of this risk factor to your disclosure in the Business
section that only addresses movements in the Index Price from August 20, 2024 to
June 30, 2025.
Validators may suffer losses due to Staking..., page 28
5.You state here that the Sponsor expects that it will stake up to 85% of the Trust's
AVAX at all times, and hold approximately 15% of the Trust's AVAX in the
Liquidity Sleeve, but that such amounts will be dynamic and subject to adjustment.
Please tell us, with a view towards revised disclosure, whether a current percentage of
the Trust's AVAX being staked will be made publicly available to investors on a
regular basis, including on your website or otherwise.
Congestion or delay in the Avalanche Network may delay purchases or sales..., page 41
6.We note news reports that in February 2024, the Avalanche network experienced a
temporary outage due to a software bug and stopped producing blocks for several
hours. Please expand this risk factor to disclose this event.
A determination that AVAX or any other digital asset is a "security" may adversely affect the
value of AVAX..., page 53
7.We note your disclosure regarding the process the Sponsor applies in determining
whether AVAX is a security. Please revise to disclose that such policies and
procedures are risk-based judgments made by the Sponsor and not a legal standard or
determination binding on any regulatory body or court.
Business
Smart Contracts and Development on the Avalanche Network, page 84
8.We note your disclosure in this section regarding decentralized apps that are currently
built on the Avalanche Network, including in the collectible non-fungible token,
gaming and music streaming categories, among others. Please revise to quantify or
otherwise describe the nature and level of activity for each of these identified use
categories, and quantify the number of active developers on the Avalanche Network
as of the most recent practicable date, to the extent known.
Forms of Attack Against the Avalanche Network, page 95
9.Please expand your disclosure in this section to discuss any flash loan attacks that the
Avalanche Network has experienced in recent periods. Also, please make
corresponding revisions to your risk factor disclosure, as appropriate.

September 22, 2025
Page 3
Description of the Shares
Staking Arrangements and Provider-Facilitated Staking Model, page 126
10.Please revise to explain in greater detail the mechanics of the staking process,
including how the staking duration on the Avalanche network is determined. In this
regard, please clarify whether the Trust will specify such duration when delegating its
validation rights to the Staking Provider, or otherwise. Disclose the expected staking
duration, if known, and expand to discuss how such duration affects your liquidity
policies and procedures. Also, please make corresponding revisions to your disclosure
on page 28, as appropriate.
11.At pages 28 – 29, you disclose the Sponsor's expectation that it will stake up to 85%
of the Trust's AVAX at all times and hold approximately 15% of the Trust's AVAX in
the Liquidity Sleeve, which it believes will be sufficient to satisfy existing and
reasonably foreseen potential redemption requests. Please revise your disclosure here
to briefly explain how you intend to redeem shares if the Liquidity Sleeve is
insufficient by describing in greater detail the short-term financing arrangements with
the Custodian and/or any Liquidity Providers to provide AVAX for satisfying
redemption requests, as referenced at pages 28 – 29. To the extent these liquidity risk
policies and procedures are intended to be consistent with the exchange's generic
listing standards, please confirm and revise your disclosure accordingly.
12.We note your disclosure in the first full paragraph on page 127 that "[t]he Sponsor
expects to implement a Staking Policy with respect to the Trust, which describes the
frequency of, and conditions under which the Trust will make such distributions, if
any, to the Trust's beneficiaries." Please revise to disclose when you intend to
establish the Staking Policy and how you will inform investors of the Staking Policy.
13.In the penultimate paragraph on page 127, you state that both the Custodian and the
Staking Provider may be entitled to receive a portion of the staking rewards, and the
total fee for both parties is expected to range between approximately 5% and 10% of
the gross staking rewards earned. Please revise to clarify whether those fees are
payable out of the Staking Consideration earned by the Trust, the Sponsor's Staking
Portion or otherwise.
Notes to Financial Statements
Note 5. Income Taxes, page F-22
14.In the third paragraph of this footnote, you disclose that "[t]ax positions not deemed to
meet the 'more-likely-than-not' threshold are recorded as a tax benefit or expense in
the current period." As tax benefits related to uncertain tax positions taken or to be
taken are recorded only when the more-likely-than-not threshold is met as stipulated
in ASC 740-10-25-6 and 25-8, please clarify your accounting for us. Revise your
disclosure here, and in the interim financial statements on page F-9, accordingly.
            We remind you that the company and its management are responsible for the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action or absence
of action by the staff.

September 22, 2025
Page 4
            Refer to Rules 460 and 461 regarding requests for acceleration. Please allow adequate
time for us to review any amendment prior to the requested effective date of the registration
statement.
            Please contact David Irving at 202-551-3321 or Mark Brunhofer at 202-551-3638 if
you have questions regarding comments on the financial statements and related matters.
Please contact David Lin at 202-551-3552 or Sandra Hunter Berkheimer at 202-551-3758
with any other questions.
Sincerely,
Division of Corporation Finance
Office of Crypto Assets
cc:Daniel P. Gibbons