VanEck Files to Launch the Industry's First Avalanche (AVAX) ETF

As per a recent statement, VanEck is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch the “VanEck Avalanche ETF.”

As part of the ongoing wave of firms seeking approval for crypto ETFs from the U.S. Securities and Exchange Commission (SEC), VanEck has filed for the “VanEck Avalanche ETF.”

This follows the fund’s recent registration of the ETF in Delaware. If approved by the SEC, it would be the first-ever ETF to be linked to AVAX.

“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,” the filing read.

The VanEck Avalanche ETF will directly hold AVAX and determine its share value based on the MarketVector Avalanche Benchmark Rate. This rate is an average of the prices in the five largest trading platforms, as identified by CCData’s exchange benchmark report.

Analysts Place High Odds Of Approval For Avalanche ETF

James Seyffart from Bloomberg Intelligence noted on Friday that while the VanEck Avalanche ETF was widely discussed earlier this week, this is the first official filing with the SEC.

Several firms are applying for the SEC’s approval of different types of cryptocurrency ETFs, such as ones tracking SOL (Solana), XRP (Ripple), DOGE (Dogecoin), and LTC (Litecoin).

Bloomberg ETF analysts have given a 90% chance of approval for a Litecoin-based ETF, while XRP and Solana have lower odds. However, Seyffart believes that Avalanche’s track record, including its role in Franklin Templeton’s tokenized fund, could aid in the approval odds.

Positive Regulatory Shift

This push comes after the SEC approved the listing of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July 2024.

The agency also made several changes to its approach toward crypto in recent months after previously taking a more hostile stance.

In just a few weeks, the agency reversed its controversial crypto accounting rules, dropped enforcement actions against major crypto players, created a crypto task force, and even issued a statement on memecoins. This shift suggests a more open approach to the crypto space.