VanEck has officially filed for an Avalanche (AVAX) exchange-traded fund (ETF), aiming to provide investors with exposure to the native token of the Avalanche network. The filing marks a significant step in expanding crypto investment opportunities beyond Bitcoin and Ethereum.
VanEck’s Avalanche ETF Proposal
According to the prospectus, the VanEck Avalanche ETF is designed to “reflect the performance of the price of AVAX,” minus operational expenses. The fund will hold AVAX directly and determine its value based on the MarketVector Avalanche Benchmark Rate.
Bloomberg ETF analyst James Seyffart noted that while VanEck’s registration was previously shared, this is the first official filing with the U.S. Securities and Exchange Commission (SEC).
Avalanche currently ranks as the 16th largest cryptocurrency, with a market capitalization of $7.7 billion. The network is recognized for its high transaction throughput and Ethereum Virtual Machine (EVM) compatibility.
Growing Demand for Crypto ETFs
The recent success of U.S. spot Bitcoin ETFs, combined with a more pro-crypto regulatory climate in Washington, has led to a surge in crypto ETF applications. Franklin Templeton recently joined the race with its own ETF filing, while issuers are also pushing for funds linked to Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE).
Although the SEC has delayed decisions on these altcoin ETFs, Bloomberg analysts Seyffart and Eric Balchunas believe approval is likely later this year. A report from JPMorgan in January suggested that greenlighting altcoin ETFs could trigger billions of dollars in inflows, with SOL and XRP products expected to attract the most institutional interest.
