VanEck seeks approval for Avalanche-ETF
VanEck files for Avalanche-ETF in latest push into crypto markets
In a significant move reflecting growing institutional interest in cryptocurrency, global investment management firm VanEck has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that tracks Avalanche (AVAX), a prominent smart contract platform.
Key Takeaways
- VanEck filed an ETF with the SEC to offer direct exposure to Avalanche (AVAX).
- The ETF will mirror AVAX's price, tracked by the MarketVector Avalanche Benchmark Rate.
- Avalanche ranks 16th in crypto with a $7.7 billion market cap, known for high throughput and Ethereum compatibility.
This ETF would offer investors direct exposure to AVAX, whose market capitalization currently stands around $7.7 billion.
Expanding institutional interest
The proposed VanEck Avalanche-ETF seeks to directly track AVAX's market price, allowing institutional and retail investors seamless access to crypto assets through conventional financial instruments. The filing indicates that shares will be valued daily based on the MarketVector Avalanche Benchmark Rate, reflecting the asset’s real-time market movements minus operating expenses. Bloomberg analyst James Seyffart noted this is VanEck's first formal filing for AVAX with the SEC, highlighting the continued institutional exploration of blockchain assets.
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Avalanche growing appeal
Avalanche, recognized for its Ethereum Virtual Machine (EVM) compatibility and high transaction throughput, has rapidly become a major player in the crypto landscape. The blockchain platform has attracted substantial investor attention due to its robust technology and scalability, making it appealing for decentralized applications (dApps) and institutional investment.
AVAX price. Source: CoinGecko.
The SEC's acceptance of this filing could mark a new era for crypto ETFs, potentially encouraging greater regulatory acceptance and boosting market confidence. It could also pave the way for further cryptocurrency-based ETFs and structured products, deepening institutional integration of blockchain technology into mainstream finance.
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