VanEck, one of the world’s largest asset managers, has filed an S-1 registration statement with the Securities and Exchange Commission (SEC) to launch an Avalanche (AVAX)-based exchange-traded fund. Should approval be granted, the ETF will offer a new avenue for those wishing to expose themselves to AVAX without having to own and manage the digital asset directly.
Source: SEC
Avalanche ETF: VanEck Sees New Opportunity Beyond Bitcoin & Ethereum
Given the expanding curiosity in crypto ETFs outside of Bitcoin and Ethereum, VanEck’s action is not shocking. VanEck sees a similar prospect for Avalanche with the SEC approving a spot Bitcoin ETF in January and a similar action for Ethereum lately.
Based on the Market Vector Avalanche Benchmark Rate—which combines pricing information from five main trading platforms—the product tracks AVAX’s price.
Conversely, this file also fits VanEck’s approach of growing its range of crypto-based products. Previously, they have started several digital asset-based ETFs to demonstrate their seriousness in integrating the conventional financial world with the fast expanding blockchain environment.
Its native token, AVAX, which is back in the green, comes next in new developments. As of the writing time, AVAX is swapped hands at about $19.57, up 4.38% over the past 24 hours.
Network Upgrades and Grants Strengthen Avalanche’s Appeal
VanEck might see considerable promise in Avalanche since the network has just shown notable development. Avalanche had a significant update in December that effectively dropped 75% of transaction fees. This improvement made the network more economical and efficient for consumers, which raised its attraction as a preferred platform for developers and crypto users.
Furthermore, starting a grant program with a $40 million fund is the Avalanche Foundation under Retro9000. This project aims to inspire more developers to expand on the Avalanche ecosystem before Avalanche9000, a significant upgrade is scheduled. The Avalanche ecosystem is projected to flourish and draw both developers and investors with this financial support.
Spending Crypto Made Easy: Avalanche Card Goes Live
Avalanche is not only related from an investing standpoint but also increasingly linked to real world payment systems. CNF had reported that the Avalanche Foundation is developing the Avalanche Card in cooperation with Visa Network issuer Rain. Users of the card can spend digital assets, including USDC, USDT, AVAX, and wAVAX, wherever Visa is accepted.
Using the Avalanche Card relieves crypto users of concerns about asset spending restrictions. Rain’s infrastructure lets you use a traditional debit or credit card, making transacting with AVAX simple. This move underlines even more Avalanche’s role in helping the acceptance of cryptocurrencies in daily life, not only as a speculative asset.
Avalanche ETF Awaits SEC Decision Amid Crypto Expansion
Although VanEck’s Avalanche ETF application is welcome news for the crypto community, SEC clearance still presents difficulties.
US authorities have been wary thus far about allowing ETFs based on digital assets outside of Bitcoin and Ethereum. Still, the likelihood of approval is still open as Avalanche keeps proving creativity and increasing acceptance.
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