• fiat currency withdrawal and deposit policies on Digital Asset Trading Platforms; • the liquidity of Digital Asset Markets and any increase or decrease in trading volume on Digital Asset Markets; • investment and trading activities of large investors that invest directly or indirectly in AVAX, including trading activity related to so-called digital asset treasury companies or similar vehicles that are intended to provide investors with indirect exposure to AVAX; • a “short squeeze” resulting from speculation on the price of AVAX, if aggregate short exposure exceeds the number of Shares available for purchase; • an active derivatives market for AVAX or for digital assets generally; • a determination that AVAX is a security or changes in AVAX’s status under the federal securities laws; • monetary policies of governments, trade restrictions, currency devaluations and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of AVAX as a form of payment or the purchase of AVAX on the Digital Asset Markets; • global or regional political, economic or financial conditions, events and situations, such as the novel coronavirus outbreak; • fees associated with processing an AVAX transaction and the speed at which AVAX transactions are settled on the Avalanche Network; • interruptions in service from or closures or failures of major Digital Asset Trading Platforms; • decreased confidence in Digital Asset Trading Platforms due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms; • increased competition from other forms of digital assets or payment services; and • the Trust’s own acquisitions or dispositions of AVAX, since there is no limit on the amount of AVAX that the Trust may acquire. In addition, there is no assurance that AVAX will maintain its value in the long or intermediate term. In the event that the price of AVAX declines, the Sponsor expects the value of the Shares to decline proportionately. The value of AVAX as represented by the Index Price or by the Trust’s principal market may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of AVAX has resulted, and may continue to result, in speculation regarding future appreciation in the value of AVAX, inflating and making the Index Price more volatile. As a result, AVAX may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Index Price and could adversely affect the value of the Shares. Due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms, they may experience fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the value of AVAX and, consequently, the value of the Shares. Digital Asset Trading Platforms are relatively new and, in many ways, are not subject to, or may not comply with, regulation in relevant jurisdictions in a manner similar to other regulated trading platforms, such as national securities exchanges or designated contract markets. While many prominent Digital Asset Trading Platforms provide the public with significant information regarding their on-chain activities, ownership structure, management teams, corporate practices, cybersecurity practices and regulatory compliance, many other Digital Asset Trading Platforms do not provide this information. Furthermore, while Digital Asset Trading Platforms are and may continue
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