- If approved, the ETF will provide investors with direct exposure to AVAX, the native token of the Avalanche network.
- VanEck’s AVAX ETF filing aligns with the growing institutional interest in regulated altcoin investment products.
The race to bring more cryptocurrency investment products to market is accelerating. Global asset manager VanEck recently filed for a spot Avalanche ETF with the U.S. Securities and Exchange Commission (SEC).
If approved, the fund would give investors direct exposure to AVAX, the native token of the Avalanche network, marking another milestone in the expansion of crypto-based financial products.
According to the prospectus, the fund aims to “reflect the performance of the price of AVAX, less the expenses of the Trust’s operations.” To achieve this, the ETF will reportedly track the Market Vector Avalanche Benchmark Rate, ensuring price accuracy for investors.
Avalanche, currently the 16th largest cryptocurrency with a market capitalization of over $8 billion, has gained traction due to its high transaction throughput and compatibility with Ethereum’s Virtual Machine (EVM).
See Related: Australia’s ASX To List VanEck Bitcoin ETF, Following Global Crypto ETF Trend
Institutional Interest In Altcoin ETFs On The Rise
By launching an AVAX ETF, VanEck is positioning itself to capitalize on the growing demand for regulated crypto investment products. The push for altcoin ETFs follows the remarkable success of U.S. spot Bitcoin ETFs, which have attracted billions in inflows since their approval.
With a more crypto-friendly political climate emerging in Washington, issuers are actively filing for new funds tied to alternative digital assets. Recently, nine issuers, including Franklin Templeton, have applied to list an XRP ETF, while others are eyeing funds linked to Solana, Cointelegraph reported.
Institutional demand for alternative crypto assets is growing. A January report by JPMorgan highlighted the potential impact of altcoin ETFs, forecasting billions of dollars in inflows should they receive regulatory approval. Specifically, the report estimated that Solana ETFs could attract between $3 billion and $6 billion, while XRP products might draw $4 billion to $8 billion in new assets.
With VanEck’s latest filing, the crypto ETF landscape continues to evolve, offering investors new avenues for exposure to digital assets beyond Bitcoin. The SEC’s decision on these funds will be closely watched, as it could set a precedent for future altcoin ETF approvals.
