- VanEck filed an S-1 registration with the SEC for the first AVAX ETF.
- The filing follows VanEck’s Delaware registration for the Avalanche ETF.
VanEck has submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) for the VanEck Avalanche ETF. Bloomberg analyst James Seyffart noted that while the registration had been widely discussed earlier, this filing represents the first official submission to the SEC. The firm has not yet disclosed the ETF’s ticker symbol. The proposed fund aims to track AVAX’s price performance while holding the asset directly.
According to the filing, the ETF will value its shares based on the MarketVector Avalanche Benchmark Rate. This rate aggregates data from the five largest exchanges as determined by CCData’s exchange benchmark report. The move aligns with the growing demand for investment products tied to digital assets beyond Bitcoin and Ethereum.
Altcoin ETFs Gain Momentum
The push for altcoin ETFs follows the SEC’s approval of spot Bitcoin ETFs in January and Ethereum ETFs more recently. Several asset managers are now seeking approval for ETFs linked to Solana (SOL), XRP, Dogecoin (DOGE), and Litecoin (LTC). Bloomberg analysts estimate a 90% approval chance for a Litecoin ETF, while SOL and XRP face lower odds.
Avalanche’s blockchain has gained traction in financial markets. It supports tokenized assets, including Franklin Templeton’s blockchain-based fund. This track record may strengthen its case for ETF approval. However, the SEC has historically been cautious with crypto ETFs due to market manipulation and investor protection concerns.
The SEC has not yet provided a timeline for its decision. Analysts expect the agency to extend its review period as it has done with previous applications. Bloomberg’s Seyffart and Eric Balchunas suggest approval could come later this year.
JPMorgan’s January report projected billions in inflows if altcoin ETFs gain approval. The report estimated that SOL and XRP ETFs could attract between $3 billion and $8 billion in new assets. If approved, the VanEck Avalanche ETF could pave the way for further integrating blockchain assets into traditional finance.
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