Grayscale Avalanche Staking ETF 8-K

What Happened

• Grayscale Investments Sponsors, LLC (the Sponsor), acting as Liquidity Engager for Grayscale Avalanche Staking ETF (GAVA), filed an 8-K on June 10, 2026 announcing that, beginning that day, it may arrange redemption orders designated as “Delayed Delivery Orders” with participating Liquidity Providers to manage digital-asset liquidity constraints. The filing states the Staking Condition in the Trust’s March 11, 2026 prospectus was satisfied on June 10, 2026 prior to any Delayed Delivery Orders being executed.
• Under these orders, delivery of specific staked digital assets to a Liquidity Provider will occur on the first business day those designated assets become transferable. The Variable Fee charged to an Authorized Participant will be adjusted up front based on the estimated delay to compensate the Liquidity Provider; no further fee adjustments will be made if actual delivery timing differs.

Key Details

• Effective/announced date: June 10, 2026; Staking Condition satisfied that same day.
• Use conditions: only for unforeseen/atypical adverse liquidity events, only after the Trust’s unstaked reserve (the “Liquidity Sleeve”) is exhausted, and only until the Liquidity Sleeve is replenished.
• Fee handling: Variable Fee is adjusted based on estimated delivery delay; no additional compensation if actual delivery date differs from estimate.
• Not all Liquidity Providers have agreed to Delayed Delivery Orders; Sponsor may seek additional agreements but none are guaranteed. The Form of Liquidity Provider Agreement is filed as Exhibit 10.1.

Why It Matters

• For investors, this creates an explicit, disclosed mechanism the Trust can use when it cannot meet redemptions immediately from its unstaked holdings: redemptions may be settled later (when staked assets become transferable) and Authorized Participants may face higher Variable Fees to compensate delayed settlement.
• The policy is limited to emergency liquidity shortages after the Liquidity Sleeve is exhausted and is intended to protect the Trust’s ability to meet redemption obligations, but the filing notes there is no guarantee such arrangements will always be available or sufficient.