On September 29, 2026, the sponsor of the Grayscale Avalanche Staking ETF entered into a Sixth Amendment to its Master Custody Service Agreement with Anchorage Digital Bank N.A. The agreement, effective as of the signing date, designates Anchorage Digital as an additional custodian for the Trust.
Under the new arrangement, Anchorage Digital will provide services related to the custody and safekeeping of a portion of the Trust's AVAX holdings. The Sponsor intends to utilize Anchorage Digital’s services to custody a portion of the Trust’s AVAX.
The Trust’s existing custody arrangement with Coinbase Custody Trust Company, LLC remains in place. Coinbase continues to serve as the Trust’s primary custodian. The Sponsor has sole discretion to determine the amounts held at either custodian as permitted by the Trust Agreement. At the current time, the Sponsor has not determined the total amount of the Trust’s AVAX it will move to Anchorage Digital.
The addition of Anchorage Digital reflects the Sponsor’s ongoing risk management approach as the Trust grows in size. The Sponsor believes the insurance coverage maintained by the Additional Custodian is industry standard. This coverage includes commercial crime insurance or a fidelity bond with limits of not less than $100 million in the aggregate, covering theft of money or other property under the Additional Custodian’s case, custody or control, including digital assets held in cold storage. Shareholders cannot be assured that the Additional Custodian will maintain adequate insurance or that such coverage will cover losses with respect to the Trust’s AVAX.
Regarding blockchain protocol changes, the Anchorage Digital Custody Agreement provides that Anchorage Digital may temporarily suspend services in the event of a fork of the Avalanche blockchain. The custodian may determine whether or not to support either branch of the forked protocol entirely, provided it uses commercially reasonable efforts to avoid ceasing to support both branches.
