Grayscale Avalanche Staking ETF

Grayscale Avalanche Staking ETF announced an amendment to its Trust Agreement to begin regular distributions of net cash proceeds from staking rewards to shareholders. These distributions will occur at least quarterly, net of Trust expenses. The change, effective around August 7, 2026, aims to conform with IRS Revenue Procedure 2025-31 regarding grantor trust status for staking activities. The filing also highlights significant uncertainties regarding the U.S. federal income tax treatment of digital assets and staking rewards for shareholders.

Grayscale Investments Sponsors, LLC announced the appointment of Kathryn Masci and Daniel Plourde as interim Co-Chief Financial Officers, effective July 2, 2026. Ms. Masci will also serve as Principal Financial and Accounting Officer and join the Board of Managers. This follows the departure of Edward McGee, the current CFO, who is stepping down for personal reasons after 7 years of service.

Grayscale Avalanche Staking ETF (GAVA) has implemented "Delayed Delivery Orders" to manage digital asset liquidity constraints for redemption requests, effective June 10, 2026. This mechanism allows for the delayed delivery of staked digital assets to participating Liquidity Providers, with an adjusted Variable Fee to compensate for the delay. These orders will only be utilized during unforeseen and atypical adverse liquidity events, after the Trust's primary reserve of unstaked digital assets (Liquidity Sleeve) has been exhausted.

Grayscale Avalanche Staking ETF reported a net asset decrease of 25.1% to $5.309 million for Q1 2026, with its Principal Market NAV per Share falling to $21.41 from $29.79. The Trust recorded a net decrease in net assets from operations of $2.028 million, primarily due to a $2.005 million net realized and unrealized loss on investment. Operationally, the Trust's shares began trading on Nasdaq under "GAVA" on March 12, 2026, following a 1-for-5 reverse share split on March 6, 2026. The Sponsor's Fee was also reduced from 2.5% to 0.35% effective March 12, 2026, with a partial fee waiver in effect.

Grayscale Investments announced updated Fund Component weightings for its Decentralized Finance (DeFi) Fund (DEFG) and Smart Contract Fund (GSC) following their first quarter 2026 reviews. The DEFG Fund adjusted its portfolio by selling Aerodrome Finance (AERO) and other components to purchase Ethena (ENA). The GSC Fund rebalanced its existing components. These adjustments were made in accordance with their respective CoinDesk index methodologies.