VanEck Files for Avalanche (AVAX) Spot ETF with the SEC

YEREVAN (CoinChapter.com) — VanEck has filed for an Avalanche (AVAX) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).

"YEREVAN (CoinChapter.com) – VanEck has filed for an Avalanche (AVAX) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), aiming to track the price performance of the cryptocurrency.

While the ETF’s registration was known earlier, this marks the first official filing with the SEC, according to an S-1 snippet shared on Monday by James Seyffart, a Bloomberg analyst who tracks crypto ETF developments.

According to the prospectus, the VanEck Avalanche ETF will hold AVAX directly and use the MarketVector Avalanche Benchmark Rate for valuation. The fund seeks to provide exposure to the optimal performance of the net relevant to investors who cannot or prefer not to invest in cryptocurrency units.

The application comes as part of a broader trend in crypto ETF filings. Following the success of Bitcoin ETFs, several issuers are applying for ETFs linked to other cryptocurrencies, including XRP, Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE).

Nine issuers have filed for an XRP ETF, while Franklin Templeton submitted its application on Monday. The SEC has delayed its decisions on these ETFs and extended the review period.

According to Balchunas, the SEC could approve some altcoin ETFs later this year. A JPMorgan report from January estimated that altcoin ETFs could see significant inflows.

According to the report, ETFs for SOL and XRP could gather between $3 billion and $8 billion in net assets by the end of their first year. The SEC has yet to issue any approvals for these funds. However, filings continue as investment firms seek to expand their crypto ETF offerings.

The VanEck AVAX ETF adds to the growing list of proposed crypto investment products awaiting regulatory review in 2023.