2025-03-16
VanEck, a global investment firm, has
applied to the U.S. Securities and Exchange Commission (SEC) to launch an
Avalanche (AVAX) exchange-traded fund (ETF).
This ETF aims to follow the price of
AVAX, the native token of the Avalanche blockchain.
Bloomberg analyst James Seyffart shared
news of the filing on March 14.
While reports about the trust surfaced
earlier, this marks the first official filing with the SEC. The fund will hold
AVAX and determine its daily value based on the MarketVector Avalanche
Benchmark Rate.
Avalanche ranks as the 17th largest
cryptocurrency, with a market capitalization of $7.6 billion.
It is known for its fast transaction
speeds and compatibility with Ethereum's Virtual Machine (EVM).
Following the success of Bitcoin ETFs
in the U.S. and a more crypto-friendly of the Trump administration, more firms
are applying to the SEC for approval of new cryptocurrency ETFs.
Companies have also filed for ETFs
linked to other cryptocurrencies, such as XRP, Solana (SOL), Litecoin (LTC),
and Dogecoin (DOGE).
Although the SEC has delayed decisions
on these ETFs, analysts believe they have a good chance of being approved later
this year.
A JPMorgan report suggests that altcoin
ETFs could bring in billions of dollars, with SOL and XRP attracting the most
institutional investment.
VanEck's AVAX ETF registration was
submitted in Delaware last week.
The SEC has recently softened its
stance on crypto regulation by reversing strict accounting rules, dropping
lawsuits against major crypto firms, and creating a task force focused on the
industry.
Firms are now hopeful that the SEC will
approve more crypto ETFs, including VanEck’s AVAX ETF, in the near future.
