GRAYSCALE AVALANCHE TRUST (AVAX) NOTES TO FINANCIAL STATEMENTS
controlled by the private key and the private key will not be capable of being restored by the Avalanche Network. The processes by which AVAX transactions are settled are dependent on the AVAX peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of AVAX. The Trust relies on third-party service providers to perform certain functions essential to its operations. Any disruptions to the Trust’s service providers’ business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational problems could have an adverse impact on the Trust’s ability to access critical services and be disruptive to the operations of the Trust. The Sponsor and the Trust may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. 8. Financial Highlights Per Share Performance
August 20, 2024 (the Commencement of the Trust’s Operations) to December 31, 2024
Year Ended December 31, 2025
Per Share Data: Principal Market NAV, beginning of year
$
88.72
$
56.43
Net (decrease) increase in net assets from investment operations: Net investment loss
(1.29 ) (57.64 )
(0.78 ) 33.07 32.29 88.72 57.22 % -2.50 % -2.50 %
Net realized and unrealized (loss) gain
Net (decrease) increase in net assets resulting from operations
(58.93 )
Principal Market NAV, end of year
$
29.79
$
Total return
-66.42 %
Ratios to average net assets: Net investment loss
-2.50 % -2.50 %
Expenses
An individual shareholder’s return, ratios, and per Share performance may vary from those presented above based on the timing of Share transactions. The amount shown for a Share outstanding throughout the period may not correlate with the Statements of Operations for the period due to the number of Shares issued in Creations occurring at an operational value derived from an operating metric as defined in the Trust Agreement. Total return is calculated assuming an initial investment made at the Principal Market NAV at the beginning of the year and assuming redemption on the last day of the year.
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