• Staking may prove unattractive to validators, which could adversely affect the Avalanche Network; • A temporary or permanent “fork” or a “clone” could adversely affect the value of the Shares; • The lack of active trading markets for the Shares may result in losses on investors’ investments at the time of disposition of Shares; • Possible illiquid markets may exacerbate losses or increase the variability between the Trust’s NAV and its market price; • The possibility that there may be less liquidity or wider spreads in the market for the Shares as compared to the shares of other spot AVAX exchange-traded products, if and when the listing of such products has been approved; • The limited history of the Index; • Competition from the emergence or growth of other digital assets could have a negative impact on the price of AVAX and adversely affect the value of the Shares; • The liquidity of the Shares may be affected if Authorized Participants cease to perform their obligations under the Participant Agreements or the Liquidity Engager is unable to engage Liquidity Providers; • Any suspension or other unavailability of the Trust’s redemption program may cause the Shares to trade at a discount to the NAV per Share; • A determination that AVAX or any other digital asset is a “security” may adversely affect the value of AVAX and the value of the Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust; • Regulatory changes or actions by the U.S. Congress or any U.S. federal or state agencies may affect the value of the Shares or restrict the use of AVAX, validating activity or the operation of the Avalanche Network or the Digital Asset Markets in a manner that adversely affects the value of the Shares; • Changes in the policies of the U.S. Securities and Exchange Commission (the “SEC”) could adversely impact the value of the Shares; • Regulatory changes or other events in foreign jurisdictions may affect the value of the Shares or restrict the use of one or more digital assets, validating activity or the operation of their networks or the Digital Asset Trading Platform Market in a manner that adversely affects the value of the Shares; • An Authorized Participant, the Trust or the Sponsor could be subject to regulation as a money service business or money transmitter, which could result in extraordinary expenses to the Authorized Participant, the Trust or the Sponsor and also result in decreased liquidity for the Shares; • Regulatory changes or interpretations could obligate the Trust or the Sponsor to register and comply with new regulations, resulting in potentially extraordinary, nonrecurring expenses to the Trust; • Conflicts of interest may arise among the Sponsor or its affiliates and the Trust; • The Sponsor’s services may be discontinued, which could be detrimental to the Trust; • The limited ability to facilitate in-kind creations and redemptions of Shares could have adverse consequences for the Trust; • If the Custodian resigns or is removed by the Sponsor, or otherwise, without replacement, it could trigger early termination of the Trust;
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