The U.S. Securities and Exchange Commission (SEC) has received a formal 19b-4 application from Nasdaq to list and trade shares of the VanEck Avalanche ETF. If authorized, the fund might be among the first spot exchange-traded funds (ETFs) providing direct access to the top Layer 1 blockchain network, Avalanche (AVAX).
The fund is a commodity-based trust under Nasdaq’s Rule 5711(d). A third-party custodian holds all AVAX tokens on behalf of the trust, ensuring storage and compliance with regulatory standards.
Why VanEck Chose Avalanche
Avalanche is a leading blockchain system known for its speed, scalability, and diversity. It runs three main chains: the X-Chain for asset transfers, the C-Chain for smart contracts with Ethereum, and the P-Chain for validators and subnets.
This design has allowed Avalanche to establish itself as a pioneer in Web3 applications, non-fungible tokens (NFTs), and decentralized finance (DeFi).
The latest filing comes after VanEck disclosed its intention to lead the way in spot altcoin ETFs in the United States in its S-1 registration statement, filed last month. Additionally, it has registered independent cryptocurrency exchange-traded funds (ETFs), such as Solana, Ethereum, and Bitcoin.
These advancements support VanEck’s goal of providing investors looking to gain exposure to digital assets regulated avenues.
Growing Altcoin ETF Filings
Other fund managers, such as Grayscale, have submitted bids to approve an Avalanche ETF besides VanEck. Grayscale recently submitted a proposal to become a spot ETF by converting its current Avalanche Trust.
Grayscale has also filed for Hedera (HBAR), XRP, Polkadot (DOT), Solana (SOL), and Litecoin (LTC).
These filings highlight the evolving cryptocurrency market as regulators begin to accept more sophisticated investment vehicles, illustrating asset managers’ increased interest in diversifying beyond Bitcoin and Ethereum.
In addition to offering investors looking for exposure to AVAX a chance, the proposed Avalanche ETF also signals a larger trend toward regulated altcoin investment products.
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