VanEck seeks SEC approval for first-ever AVAX ETF

VanEck has filed to launch an Avalanche (AVAX) ETF, following its Trust filing just three days prior. This marks the firm’s first attempt at an AVAX-focused ETF, adding to its recent efforts in niche investment products.

The registration statement filed on Friday noted: 

“The Trust’s investment objective is to reflect the performance of the price of ‘AVAX,’ the native token of the Avalanche network, less the expenses of the Trust’s operations.”

VanEck registered for the ETF in Delaware this past week for what’s believed to be the first AVAX  ETF.

“Notably — the trust registration was shared widely on this earlier this week,” said Bloomberg Intelligence analyst James Seyffart on Friday in a post on X. “But this is the first actual filing with the SEC.”

VanEck joins the crypto ETF race with first-ever avalanche (AVAX) filing

Following Bitcoin’s remarkable rally, investment firms are increasingly rolling out new products aimed at investors who are looking for the next breakout token. 

Applications for exchange-traded funds have shot up since Gary Gensler stepped down as SEC Chair. A number of companies have applied to the SEC for approval for different crypto ETFs, such as SOL, XRP, DOGE, and LTC. The previous administration saw the SEC approve the listing of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July.

However, AVAX and the expanded ETF market are presently weighted down by bearish sentiment. The SEC’s approval, however, may not result in inflows until market conditions improve. 

Today brought the first-ever Avalanche ETF, as VanEck filed for the product. In recent months, VanEck has played around with various experimental ETF constructions. In January, the firm submitted an ETF based on crypto exchanges, mining firms, and payment gateways. If approved, this particular fund would invest in a collection of various crypto companies.

VanEck might explore a couple of ETF types, but its Avalanche product could still be a long shot. The filing sparked a more than 4% uptick in AVAX’s price, suggesting potential bullish momentum.

Crypto ETFs face headwinds as market struggles

The current market cycle for the crypto ETF industry has been brutal. Bitcoin ETFs have now been subject to five straight weeks of net outflows, and Ethereum funds have similarly been subjected to institutional skepticism.

At the same time, the SEC has delayed decisions on several submissions, including Solana and XRP ETFs. With no clear relief in sight, concerns around a potential U.S. recession continue to fuel bearish sentiment across the crypto space.

Even if VanEck’s AVAX ETF secures SEC approval, its immediate market appeal may be limited, though it could prove valuable in the long run.

The regulatory watchdog has signalled a more friendly approach to the industry. In a matter of just a few weeks, the agency has rescinded controversial crypto accounting guidance, dropped enforcement actions against major crypto industry players, created a crypto task force and issued a meme coin statement. 

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