VanEck Files for an Avalanche ETF, Sparking Anticipation of a Potential Spot ETF Application

VanEck recently filed for an Avalanche ETF in Delaware, sparking anticipation of a potential spot ETF application. This move comes amid a broader market correction

Crypto asset manager VanEck has filed for an Avalanche ETF (CRYPTO: AVAX) with the Delaware Trust Company. This move comes amid a broader market correction, where the price of AVAX dropped.

The registration has led to speculation that VanEck may soon apply for a spot ETF with the SEC and possibly reverse AVAX’s downward price trend.

This year alone, asset managers have become more open to registering various crypto ETFs following the SEC’s actions and Donald Trump’s win.

VanEck’s Latest Venture

VanEck is expanding its range of crypto investment products with the registration of an Avalanche ETF, according to a recent filing with the Delaware Trust Company.

This filing underscores VanEck’s interest in expanding its presence in the crypto market. The firm has already received approval for Bitcoin, Ethereum, and Solana ETFs.

Earlier this year, VanEck’s application for a spot Bitcoin ETF was rejected by the SEC. However, the SEC chairman hinted at the possibility of approval for spot bitcoin ETFs this year.

In another development, institutional demand for Bitcoin is increasing as major miners move their BTC to cryptocurrency exchanges.

As part of its broader strategy, Avalanche has made significant strides in tokenization, strengthening its position in the crypto industry. The blockchain has partnered with major financial players such as JPMorgan and Mastercard for various projects.

These collaborations are centered around portfolio management and blockchain applications, highlighting Avalanche’s potential for institutional use.

Avalanche: A Scalable Chain Competing With Ethereum

Avalanche’s blockchain is known for its scalability and speed, positioning it as a competitor to Ethereum. The blockchain’s native token, AVAX, soared to become one of the top 10 cryptocurrencies by market cap in 2021.

Currently, AVAX holds the 20th spot, with a market capitalization of $7 billion.

This year, the price of AVAX has seen a decline of 55%, although the recent ETF filing by VanEck could influence the broader crypto market sentiment.

If VanEck files for a spot ETF, it may attract new investors to AVAX. Additionally, recent data from IntoTheBlock shows an increase in new users on the Avalanche blockchain, further supporting the optimism around the ecosystem.

However, the market remains cautious due to ongoing uncertainty in the broader crypto space. Bitcoin’s price continues to affect the market, and analysts are closely monitoring macroeconomic indicators.

The upcoming release of the U.S. CPI data could impact the market’s trajectory in the coming weeks.