- Nasdaq applies to list VanEck’s Avalanche ETF under SEC rules.
- ETF will track AVAX price without investors holding tokens.
- VanEck joins Grayscale in launching crypto-backed Avalanche ETFs.
Nasdaq submitted an application to the SEC to list the VanEck Avalanche ETF, which aims to provide investors with indirect access to AVAX tokens. The recent application marks a major step for Nasdaq’s expansion in the spot crypto product sector. If approved, the ETF will enable investors to track the price of the AVAX token without direct token ownership.
The VanEck Avalanche ETF seeks to hold tokens in trust to track the price of AVAX. VanEck Digital Assets will sponsor the trust, while a third institution will provide secure custody of the tokens. The ETF allows investors to access and track the AVAX price without the need for cryptocurrency wallets or trading platforms.
VanEck’s Crypto ETF Portfolio
VanEck continues to pursue the registration of spot crypto ETF products in the United States. On March 10, The company registered the product as a corporate trust service company in Delaware. The AVAX ETF application is the fourth independent crypto ETF application filed by VanEck with the U.S. Securities and Exchange Commission for Bitcoin, Ether, and Solana ETFs.
In March 2024, VanEck filed its first Solana-based ETF application, which made it one of the first issuers in the SOL ETF race. The firm demonstrates its dedication to crypto-based ETFs with the latest Avalanche ETF application. On March 14, VanEck announced their product application on social media channels.
Competitive Avalanche ETF Race
Grayscale Investments also plans to launch its AVAX-backed ETF, as Nasdaq already submitted the application to list the product on March 28. Grayscale plans to convert its AVAX fund, launched in August 2024, into this new ETF. The competition between VanEck and Grayscale shows the increased demand for AVAX-backed investment products.
Exchange-traded products linked to AVAX have gained momentum, although the token faced market hurdles. The price of AVAX traded at $18.00 on April 10 after a 56% decrease from its $41.00 peak in January. The broader crypto market decline has reduced AVAX’s value, which signals potential volatility for the token in 2025.
Altcoin ETFs Attract Massive Interest
The Nasdaq filing is part of the race between asset managers to launch altcoin ETFs. Nasdaq recently submitted an application to the SEC to list Grayscale’s Avalanche ETF as well as other altcoin products. Additionally, asset managers have filed applications for ETFs linked to Solana, Dogecoin, Polkadot, and Cardano, which shows improved regulatory conditions.
VanEck’s recent applications show the increased market demand for altcoin ETFs. The company filed for a Binance Coin ETF in March, which makes it the first asset manager to offer such a product in the U.S. The future of the cryptocurrency market depends on SEC regulation as more asset managers join the crypto ETF race.