VanEck Seeks SEC Approval for Avalanche ETF
By: Eva Baxter
Global investment manager VanEck has submitted a registration statement to the United States Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) focused on the Avalanche (AVAX) cryptocurrency. This proposed ETF aims to provide investors with direct exposure to the AVAX token by tracking its market performance. The filing underscores VanEck's efforts to expand its range of cryptocurrency investment products amidst growing interest in digital assets.
The VanEck Avalanche ETF seeks to hold AVAX directly and calculate its shares' valuation based on the MarketVector Avalanche Benchmark Rate. This rate compiles pricing data from the top five trading platforms as sanctioned by CCData’s exchange benchmark report. The ETF application follows VanEck's recent registration of the Avalanche ETF in Delaware, indicative of the firm’s preventive stride in readying itself for potential approval.
This move comes during a time when asset managers are keenly venturing into cryptocurrencies beyond the already established Bitcoin and Ethereum. Since the approval of Bitcoin and Ethereum-based ETFs, there has been burgeoning interest, evidenced by other emerging altcoin ETFs. While Bloomberg analysts estimate high approval odds for Litecoin, Ripple (XRP) and Solana face lower probabilities. Avalanche’s increasing utility in financial innovations, such as its use in Franklin Templeton's tokenized fund, showcases its potential for regulatory approval.
The SEC's stance on cryptocurrency ETFs has historically been cautious, emphasizing market manipulation and investor protection concerns. However, evolving regulatory attitudes and the inception of a Crypto Task Force have fostered optimism for a more favorable outlook towards digital asset products. VanEck’s application might serve as a pivotal test case to widen the pathway for blockchain-based investment vehicles, potentially paving the way for broader integration of cryptocurrencies into mainstream finance if approved.
