• 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; • the possibility that the Shares may trade at a price that is at, above or below the Trust’s NAV per Share as a result of the non-concurrent trading hours between NASDAQ and the Digital Asset Trading Platform Market; • regulatory changes or actions by the U.S. Congress or any U.S. federal or state agencies that 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; • 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; • changes in the policies of the U.S. Securities and Exchange Commission (the “SEC”) that could adversely impact the value of the Shares; • regulatory changes or other events in foreign jurisdictions that 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; • the possibility that 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 such Authorized Participant, the Trust or the Sponsor and also result in decreased liquidity for the Shares; • regulatory changes or interpretations that could obligate the Trust or the Sponsor to register and comply with new regulations, resulting in potentially extraordinary, nonrecurring expenses to the Trust; • potential conflicts of interest that may arise among the Sponsor or its affiliates and the Trust; • the potential discontinuance of the Sponsor’s continued services, which could be detrimental to the Trust; • the limited ability to facilitate in-kind creations and redemptions of Shares, which could have adverse consequences for the Trust; • the lack of ability to participate in any different form of Staking (as defined herein) to the extent the Staking Condition (as defined herein) is not satisfied, which could have adverse consequences for the Trust; • the risk of loss of AVAX from Staking, which could adversely affect the value of the Shares; • the inaccessibility of staked AVAX tokens for a variable period of time, which could result in certain liquidity risks to the Trust; • the Trust’s dependence on third parties to effectively execute the Trust’s Staking Arrangements (as defined herein); • the uncertain regulatory landscape surrounding Staking; • potential tax liabilities for beneficial owners of Shares without receiving corresponding distributions from the Trust in connection with Staking;
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