VanEck Seeks SEC Approval for First-Ever AVAX ETF

VanEck has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch the “VanEck Avalanche ETF.” This comes shortly after the firm registered the Avalanche ETF in Delaware, signaling its intention to expand investment options tied to AVAX.

If approved, this would be the first-ever exchange-traded fund (ETF) linked to AVAX, the native token of the Avalanche network. According to the filing, the fund’s goal is to track AVAX’s price performance while accounting for operational costs.

The ETF will directly hold AVAX, and its share value will be determined based on the MarketVector Avalanche Benchmark Rate. This benchmark combines pricing data from the five largest crypto exchanges, as identified by CCData’s exchange benchmark report.

More Crypto ETFs in the Pipeline

James Seyffart from Bloomberg Intelligence stated on Friday that although the VanEck Avalanche ETF had been widely discussed earlier this week, this is the first official filing with the SEC.

VanEck is not the only firm seeking approval for crypto-based ETFs. Several companies have also applied for ETFs linked to Solana (SOL), XRP (Ripple), Dogecoin (DOGE), and Litecoin (LTC). Bloomberg ETF analysts estimate a 90% chance of approval for a Litecoin ETF, while XRP and Solana have lower odds. Avalanche’s involvement in Franklin Templeton’s tokenized fund could improve its chances of getting the green light.

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SEC’s Evolving Approach to Crypto

This surge in ETF applications follows the SEC’s approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July 2024 under the previous administration.

More recently, the SEC has made several moves that suggest a more open stance toward crypto, including:

• Reversing strict crypto accounting rules
• Dropping enforcement actions against major crypto firms
• Forming a dedicated crypto task force
• Issuing a statement on memecoins

The race for crypto ETFs is heating up, and Avalanche might just be the next token to break through.

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