Avalanche ETF in the Works: Will AVAX Follow Bitcoin’s ETF Success?

Avalanche ETF Proposal Filed with SEC — Is Altcoin Season Back?

Avalanche ETF in the Works – In a significant move for digital asset investment products, Nasdaq has filed a rule change with the SEC to list a proposed exchange-traded fund (ETF) that would track the spot price of Avalanche (AVAX). The 19b-4 filing, submitted Thursday, comes shortly after asset manager VanEck applied for a VanEck Avalanche ETF, and just weeks after Nasdaq filed a similar request to list a Grayscale Avalanche fund.

Momentum Builds for Altcoin ETFs

The filing is part of a broader wave of applications from major financial institutions seeking to capitalize on the momentum following the successful launch of spot Bitcoin and Ethereum ETFs in 2024. These 11 spot Bitcoin ETFs have collectively attracted over $35 billion in net inflows, highlighting increasing demand for regulated crypto investment products.

Alongside Avalanche, issuers are pursuing funds tracking other leading altcoins such as Solana (SOL), XRP, Litecoin (LTC), and Sui (SUI). On the same day, 21Shares filed for a Dogecoin (DOGE) ETF, joining Grayscale and Bitwise in targeting the popular meme coin.

Bloomberg ETF analyst James Seyffart stated in an email to Decrypt that there is growing optimism about the approval of these altcoin ETFs. He noted that AVAX could receive SEC approval by December, while DOGE may follow in October. “We are waiting to see where this SEC will draw the line on what cryptos are allowed in an ETF wrapper,” he wrote.

Avalanche Outlook: Analyst Predicts Long-Term Growth

AVAX, the native token of the Avalanche blockchain, is currently trading around $18.30, down 1.6% in the past 24 hours and over 87% below its all-time high of $145 set in 2021, according to CoinGecko. However, Standard Chartered recently initiated coverage on Avalanche, forecasting a potential rise to $250 by 2030, citing the network’s unique architecture and scalability advantages through its dedicated L1 app chains.

While investor sentiment remains cautious, institutional moves and regulatory clarity could mark a turning point for Avalanche and other altcoins eyeing ETF inclusion.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.