VanEck seeks SEC approval for Avalanche ETF
VanEck, a major asset management firm, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the VanEck Avalanche (CRYPTO:AVAX) ETF.
This ETF aims to track the price performance of AVAX, the native token of the Avalanche blockchain, offering investors a regulated entry into the cryptocurrency market.
The VanEck Avalanche ETF is structured to reflect AVAX’s performance, minus operational costs, and will hold AVAX tokens valued daily based on the MarketVector Avalanche Benchmark Rate.
VanEck Digital Assets, LLC, will sponsor the Trust, with Delaware Trust Company serving as trustee and a custodian managing all AVAX holdings.
Avalanche, the 16th largest cryptocurrency with a market capitalisation of $7.7 billion, is known for its high-speed transactions and Ethereum Virtual Machine (EVM) compatibility.
This filing represents a step toward broadening institutional access to altcoins, following the SEC’s approval of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs in 2024.
The SEC's increasing acceptance of crypto investment products has driven a wave of ETF applications.
Beyond Avalanche, issuers are also seeking approval for ETFs tied to Solana (CRYPTO:SOL), XRP (CRYPTO:XRP), Litecoin (CRYPTO:LTC), and Dogecoin (CRYPTO:DOGE).
Analysts suggest that if approved, these altcoin ETFs could attract significant institutional investment, potentially leading to billions in inflows.
As the cryptocurrency market evolves, regulatory decisions will play a crucial role in shaping its trajectory.
The SEC’s approach to these ETFs will be closely monitored due to its potential influence on market trends and investor sentiment.
At the time of reporting, the Avalanche (AVAX) price was $18.63.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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