VanEck, a global investment management firm with assets totaling $113.8 billion, has made a groundbreaking move by registering a statutory trust for an Avalanche (AVAX) exchange-traded fund (ETF) in Delaware.
The establishment of the VanEck Avalanche ETF trust on March 10, indicated by file number 10125689, paves the way for a potential AVAX ETF that has stirred institutional interest in the digital asset sector.
In the next phase, VanEck is expected to file a registration statement (S-1) with the US Securities and Exchange Commission (SEC), detailing the ETF's structure, investment strategy, and regulatory requirements. Once approved, the ETF will be open for public trading, attracting investors keen on the growing crypto landscape.
The move by VanEck follows a trend of rising interest in cryptocurrency ETFs, with other firms like Canary Capital and Bitwise also progressing towards launching ETFs for Sui (SUI) and Aptos (APT) tokens, reflecting a broader shift towards emerging crypto assets beyond Bitcoin and Ethereum.
Avalanche, known for its high-performance blockchain, facilitates a range of Web3 technologies such as decentralized applications (dApps), non-fungible tokens (NFTs), and decentralized finance (DeFi). The native token of the Avalanche network, AVAX, plays a crucial role in transactions, staking, and governance, positioning itself as a prominent player in the crypto market with a market capitalization of $7.1 billion.
Despite its innovative technology and institutional interest, AVAX has faced challenges in the market, with a significant 61% decline in the past year. Currently trading at $17.2, AVAX has experienced a 5.3% dip in the last 24 hours, contrasting with the broader cryptocurrency market which only fell by 8.1% during the same period. However, with a notable surge in trading volume by 95.5% recently, AVAX continues to generate interest despite its recent price performance.
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