VanEck Files S-1 Registration Statement with the SEC for an Avalanche (AVAX) Exchange-Traded Fund (ETF)

According to the filing, the VanEck Avalanche ETF will hold AVAX directly and value its shares based on the MarketVector Avalanche Benchmark Rate

US asset manager VanEck has filed to launch an Avalanche exchange-traded fund (ETF), aiming to provide investors with direct exposure to AVAX.

According to a filing with the US Securities and Exchange Commission (SEC), the VanEck Avalanche ETF will hold units of AVAX and value its shares based on the MarketVector Avalanche Benchmark Rate. This rate serves as an average of the mid-price quotes from the five largest trading platforms, determined by CCData’s exchange benchmark report.

The filing follows VanEck’s recent registration of the Avalanche ETF in Delaware, further indicating the firm’s commitment to expanding its lineup of crypto investment products.

The firm has yet to disclose the ticker symbol for the proposed ETF.

Altcoin ETFs face approval chances

This move comes amid broader efforts by asset managers to introduce ETFs linked to cryptocurrencies beyond Bitcoin and Ethereum.

Since the SEC approved spot Bitcoin ETFs in January and recently cleared Ethereum-based products, firms have been rolling out various digital asset ETFs.

Bloomberg ETF analysts have provided approval probability estimates for different altcoin ETFs. According to their analysis, Litecoin faces a 90% chance of approval, while XRP and Solana have lower probabilities.

Avalanche is known for its role in financial innovations, such as Franklin Templeton’s tokenized fund on the Avalanche network. This institutional interest could bode well for the prospects of the Avalanche ETF.

Regulatory climate and implications

The SEC has historically approached crypto ETFs with caution, citing concerns over market manipulation and investor protection.

However, recent shifts in regulatory attitudes, notably during President Donald Trump’s administration and the establishment of a Crypto Task Force, have set the stage for a more open-minded approach to digital asset products.

While it remains uncertain how the SEC will respond to VanEck’s application for the Avalanche ETF, the move could pave the way for broader adoption of altcoin ETFs.

If approved, it could open the door for additional blockchain-based investment vehicles and contribute to the integration of cryptocurrencies into traditional finance.