Grayscale Avalanche Staking ETF (GAVA) plans mandatory cash distributions of staking rewards

Rhea-AI Filing Summary

Grayscale Avalanche Staking ETF plans to amend its Trust Agreement so that, on or around August 7, 2026, the Trust will begin making regular cash distributions of net staking rewards to shareholders. The Trust would be required to convert staking rewards (“Staking Consideration”) to cash no less often than quarterly and promptly distribute the net cash, after paying Trust expenses not assumed by the sponsor, including a portion of the staking rewards to the sponsor for facilitating staking arrangements.

The amendment would also make conforming changes to support the Trust’s staking program and mandatory distribution framework. The size of any distribution will depend on staking rewards earned in each period. Shareholders are encouraged to consult tax advisors about potential tax consequences. The ETF continues to trade on Nasdaq under the symbol GAVA.

Key Figures

Effective Date: August 7, 2026

1 metrics

Effective Date August 7, 2026 Date on or around which the Trust amendment is intended to take effect

Key Terms

Staking Consideration, staking rewards, mandatory distribution framework, Second Amended and Restated Declaration of Trust and Trust Agreement

4 terms

Staking Consideration financial

"requiring the Trust to reduce the Staking Consideration held by the Trust to cash"

staking rewards financial

"regular distributions of the net cash proceeds of staking rewards to Shareholders"

Staking rewards are incentives given to individuals who commit their cryptocurrency holdings to support a blockchain network's operations, such as confirming transactions and maintaining security. Think of it like earning interest or dividends for locking up your savings or investments, encouraging people to keep their assets engaged in keeping the system running smoothly. For investors, staking rewards provide a way to earn passive income while helping to secure the network.

mandatory distribution framework financial

"conforming changes to facilitate the Trust’s staking program and mandatory distribution framework"

Second Amended and Restated Declaration of Trust and Trust Agreement regulatory

"Amendment No. 2 to the Second Amended and Restated Declaration of Trust and Trust Agreement"

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 07/17/2026 - 04:25 PM Accepted by SEC EDGAR 07/17/2026 - 04:02 PM Learn about SEC filing dates

FAQ

What change is Grayscale Avalanche Staking ETF (GAVA) proposing in this supplement?

The Trust plans to amend its Trust Agreement so it must convert staking rewards to cash at least quarterly and distribute the net cash proceeds of those rewards to shareholders, after Trust expenses and amounts paid to the sponsor.

When will the proposed amendment for GAVA become effective?

The sponsor intends the amendment to become effective on or around August 7, 2026. From that date, the Trust’s revised framework for converting staking rewards to cash and making mandatory distributions to shareholders is expected to apply.

How often could GAVA shareholders receive cash from staking rewards?

The Trust would be required to reduce Staking Consideration to cash no less often than quarterly and promptly distribute the net cash proceeds of staking rewards to shareholders, after deducting Trust expenses not assumed by the sponsor.

Will the sponsor of GAVA receive part of the staking rewards?

Yes. A portion of the Staking Consideration may be paid to the sponsor as consideration for facilitating the Trust’s staking arrangements, before the remaining net cash proceeds are distributed to shareholders.

Can investors know in advance how much GAVA will distribute from staking rewards?

No. The Trust states that distribution amounts will depend on the Staking Consideration actually received in each period and therefore cannot be predicted with certainty ahead of time.

What tax considerations are mentioned for GAVA shareholders?

Shareholders are advised to discuss any tax consequences arising from the proposed amendment and resulting cash distributions of staking rewards with their own tax advisors, as individual tax treatment may vary.

PROSPECTUS SUPPLEMENT Filed Pursuant to Rule 424(b)(3)
Registration No. 333-289829

Grayscale Avalanche Staking ETF

Prospectus Supplement No. 2 Dated July 17, 2026
To the Prospectus Dated March 11, 2026

This prospectus supplement (this “Prospectus Supplement”) forms part of, and should be read together with, the prospectus of Grayscale Avalanche Staking ETF (the “Trust”), dated March 11, 2026 (as supplemented or amended from time to time, the “Prospectus”). Capitalized terms used but not defined in this Prospectus Supplement have the meanings given to them in the Prospectus.

IMPORTANT NOTICE REGARDING PROPOSED AMENDMENT TO THE TRUST AGREEMENT

On or around August 7, 2026 (the “Effective Date”), Grayscale Investments Sponsors, LLC (the “Sponsor”), as sponsor of Grayscale Avalanche Staking ETF (the “Trust”), intends to enter into Amendment No. 2 (the “Proposed Amendment”) to the Second Amended and Restated Declaration of Trust and Trust Agreement, dated February 2, 2026, as amended (the “Trust Agreement”) with CSC Delaware Trust Company, the trustee (the “Trustee”) of the Trust.

The Proposed Amendment would amend certain provisions of the Trust Agreement, effective as of the Effective Date, to, among other things, (i) provide for the Trust to commence regular distributions of the net cash proceeds of staking rewards to Shareholders, by requiring the Trust to reduce the Staking Consideration held by the Trust to cash no less often than quarterly and to promptly distribute the cash proceeds, net of any Trust expenses not assumed by the Sponsor (including, for example, paying a portion of the Staking Consideration to the Sponsor as consideration for its facilitation of the Staking Arrangements), to the Shareholders, and (ii) make certain other conforming changes to facilitate the Trust’s staking program and mandatory distribution framework. The amount of such distributions will depend on the Staking Consideration actually received by the Trust during each period and cannot be predicted with certainty.

Shareholders are advised to discuss any tax consequences relating to their investment in the Trust as a result of the Proposed Amendment, if and when executed, with their tax advisors.

Except as expressly updated or supplemented by this Prospectus Supplement, the Prospectus remains unchanged. To the extent of any inconsistency between this Prospectus Supplement and the Prospectus, this Prospectus Supplement will control.

Shares of the Trust are listed on Nasdaq Stock Market LLC (“NASDAQ”) under the symbol “GAVA.”

___________________________

Investing in the Shares involves significant risks. You should carefully consider the risk factors described beginning on page 23 in the Prospectus.

These securities have not been approved or disapproved by the Securities and Exchange Commission or any state securities commission nor has the Securities and Exchange Commission passed upon the adequacy or accuracy of the Prospectus or this Prospectus Supplement. Any representation to the contrary is a criminal offense.

The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.

Please retain this Prospectus Supplement for future reference.

Date: July 17, 2026