VanEck Registers Trust for Potential Avalanche (AVAX) ETF Amid Expanding Crypto Investment Landscape

VanEck Registers Trust for Potential Avalanche (AVAX) ETF Amid Expanding Crypto Investment Landscape

Asset management firm VanEck has established a trust company in Delaware for a potential Avalanche (AVAX) exchange-traded fund (ETF), following a pattern seen in its previous crypto ETF ventures. This move suggests VanEck is continuing its strategic push into the expanding digital asset market, capitalizing on regulatory shifts that have made the approval of crypto ETFs more plausible.

The filing comes as several U.S. financial institutions accelerate their efforts to launch new cryptocurrency investment products. The Securities and Exchange Commission (SEC) has recently shown greater openness to ETFs tied to major digital assets such as Solana, XRP, and Dogecoin. Additionally, firms are now seeking approval for funds based on smaller cryptocurrencies. On Monday, Rex Shares and Osprey Funds filed for an ETF that would track MOVE, the native token of the Movement Network. Last week, Canary Capital initiated steps toward launching an ETF based on Sui.

With a market capitalization of approximately $7 billion, Avalanche ranks as the 20th largest cryptocurrency, according to data from CoinGecko. Developed by Ava Labs, the Avalanche network is composed of three interoperable blockchains designed to facilitate asset creation, smart contract interactions, and validator coordination. At its peak in November 2021, AVAX reached an all-time high of $145, though it currently trades around $17.17 following a broader market downturn.

VanEck has already launched spot Bitcoin and Ethereum ETFs in the U.S. and was the first firm to submit a Solana ETF application to the SEC in June. However, a trust registration does not necessarily indicate an imminent ETF filing. VanEck previously registered a trust for its Solana fund in November 2021 when SOL was at its pandemic-era peak of $259, yet the actual application followed much later.

Industry analysts suggest that VanEck’s approach reflects a calculated effort to be an early entrant in the market for crypto ETFs tied to alternative assets. “VanEck seems to be taking a ‘throw everything at the wall and see what sticks’ approach, which makes sense,” said Sumit Roy, a senior ETF analyst at etf.com. “Avalanche isn’t the most widely traded cryptocurrency, but being first to market with an ETF in a new category comes with potential upside and little downside.”

During the crypto boom of the pandemic era, Avalanche was frequently touted as an “Ethereum Killer” due to its high-speed transactions and lower costs. While its total value locked (TVL) has since declined, Avalanche still houses approximately $1 billion in digital assets, according to DeFiLlama.

As institutions race to introduce new crypto investment vehicles, VanEck’s latest move underscores the growing interest in diversifying cryptocurrency ETFs beyond Bitcoin and Ethereum. Whether the firm proceeds with a formal application for an Avalanche ETF remains to be seen, but its proactive stance signals continued confidence in the long-term potential of blockchain-based assets.