- VanEck filed for an Avalanche ETF on March 10, signaling growing interest in AVAX.
- Crypto ETFs have recently seen outflows, but a market rebound could reverse the trend.
- AVAX is projected to drop to $13.73, but could surge to $30 if conditions improve.
Avalanche (AVAX) exchange-traded fund is the new thing in town. VanEck’s asset manager has filed for AVAX ETF. According to public records from the Delaware state website, the filing was made on March 10 and is named the “VanEck Avalanche ETF.”
This move follows a growing trend. Crypto ETFs have surged in popularity. The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin (BTC) ETFs in January 2024. Later, Ethereum (ETH) ETFs also received approval. Many expect U.S. government’s pro-crypto stance to pave way for more crypto-based ETFs.
ETFs have encountered challenges even though they provide investors with a regulated means of accessing cryptocurrency. There have been significant withdrawals from cryptocurrency ETFs in recent weeks. After the U.S. government decided to put tariffs on several nations, the market fell.
Investor sentiment was severely impacted by this. The prices of Bitcoin, Ethereum, and a number of other cryptocurrencies dropped. However, the market might turn around if the state of the world economy stabilizes. A fresh round of funding could prove advantageous for AVAX.
The AVAX ETF filing is undeniably bullish. if approved, it could fuel demand, much like bitcoin’s rally after ETF approval. BTC surged past $73,000 in early 2024 after its spot ETFs went live.
But, history shows ETF approval does not always lead to price surges. ETH ETF launch had minimal impact on ETHs price. AVAX could see a similar fate unless broader market trends turn bullish.
Avalanche Price Predictions
Forecasts for AVAX remain mixed. According to CoinCodex, the asset is expected to drop in the short term. The platform projects AVAX to hit $13.73 by May 24, 2025, marking a 24.14% decline from current levels.
But, there is an upside scenario. If macroeconomic conditions improve and institutional capital returns, AVAX could reclaim the $30 mark. AVAX could also see a 56% increase from current prices.
The AVAX ETF registration by VanEck shows optimism about the asset’s prospects. However, a number of things will influence price action. Investor sentiment, regulatory clarity, and macroeconomic stability will all be important factors.
Avalanche’s acceptance could lead to a surge similar to the trajectory of Bitcoin. But it might not have much of an impact if it follows Ethereum. Updates on ETF approvals and general market circumstances should be monitored by traders.