VanEck Pushes for First AVAX ETF Amid Growing Institutional Demand

Asset management giant VanEck has officially filed with the U.S. Securities and Exchange Commission for the approval of an AVAX ETF. The filing, submitted on March 14, positions VanEck as the first firm to formally pursue an ETF based on Avalanche’s native token, AVAX.

VanEck’s registration of the VanEck Avalanche ETF follows a wave of increasing institutional interest in alternative cryptocurrencies beyond Bitcoin and Ethereum. The trust’s objective is to track the price performance of AVAX while deducting operational costs. This action is consistent with the overall pattern of established financial companies looking for opportunities in blockchain assets within a regulated framework.

The filing comes at a time when several asset managers, including Franklin Templeton, Bitwise, and Grayscale, are actively pursuing ETF approvals for altcoins like XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). The SEC’s approval of spot Bitcoin ETFs in early 2024 and Ethereum ETFs in mid-2024 has fueled speculation that additional crypto-based ETFs could soon gain regulatory acceptance.

Under the previous SEC leadership, regulatory roadblocks hampered the approval of altcoin ETFs. However, the agency has recently dropped enforcement actions against major crypto firms and established a dedicated crypto task force.

Vaneck’s Avalanche ETF

VanEck’s move is not just about capitalizing on crypto’s institutionalization but also about positioning itself at the forefront of a growing sector. If approved, the AVAX ETF would provide investors with an easier and more regulated way to gain exposure to Avalanche without directly purchasing the token on exchanges.

Avalanche, a high-speed smart contract platform, has gained traction due to its scalability, low transaction fees, and interoperability features. With a total value locked exceeding $1.2 billion and growing adoption in decentralized finance and gaming applications, AVAX has established itself as a strong contender in the blockchain ecosystem. The introduction of an ETF would further solidify its institutional credibility.

As the SEC deliberates on VanEck’s proposal, market participants eagerly anticipate whether the agency’s evolving stance on digital assets will pave the way for a new era of altcoin ETFs.