VanEck Files for Avalanche ETF with SEC, Aiming to Offer Direct Exposure to AVAX

Global investment management firm VanEck has officially filed with the U.S. Securities and Exchange Commission (SEC) for an Exchange-Traded Fund (ETF) centered around Avalanche (AVAX), marking a significant step toward offering institutional and retail investors direct exposure to the Avalanche blockchain.

The proposed VanEck Avalanche ETF, as outlined in the filing, is designed to track the price performance of AVAX, the native cryptocurrency of the Avalanche network. According to the ETF’s prospectus, the fund intends to reflect the daily performance of AVAX's price, minus operational expenses, and will hold the token as part of its portfolio. Additionally, the ETF will value its shares based on the reported MarketVector Avalanche Benchmark Rate.

Avalanche and the Growing Popularity of Crypto ETFs

Avalanche, which currently ranks as the 16th largest cryptocurrency by market capitalization, boasts a total valuation of approximately $7.7 billion. The blockchain is well-regarded for its high throughput and Ethereum Virtual Machine (EVM) compatibility, making it an attractive asset for investors seeking diversified exposure to the blockchain space.

James Seyffart, a Bloomberg analyst who has been closely following developments in the crypto ETF space, shared a snippet of the S-1 filing on social media on March 14. While the Avalanche ETF filing had already been widely discussed, this marks the first official submission with the SEC, bringing it one step closer to potential approval.

Rising Interest in Crypto ETFs as the Market Expands

The filing for the VanEck Avalanche ETF is part of a broader trend in the crypto investment world. The success of U.S. spot Bitcoin ETFs, coupled with a pro-crypto stance from the current administration, has sparked a wave of ETF applications targeting various cryptocurrencies. As of March 2025, multiple issuers have already filed for ETFs linked to other popular digital assets, including Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). Recently, Franklin Templeton entered the fray with its own XRP ETF filing on March 11.

Although the SEC has yet to make final decisions on many of these applications, industry analysts like Seyffart and fellow Bloomberg analyst Eric Balchinas suggest that the chances of approval for these ETFs later in 2025 are relatively high.

Institutional Demand for Altcoin ETFs

JPMorgan’s January report on crypto ETFs noted that the approval of altcoin ETFs—especially those related to Solana (SOL) and XRP—could trigger billions of dollars in inflows, particularly from institutional investors. The report projected that Solana could attract between $3 billion and $6 billion in net assets, while XRP could gather as much as $4 billion to $8 billion in new investments.

This heightened demand for altcoin-focused ETFs underscores a broader institutional appetite for diversified exposure to the rapidly growing cryptocurrency market. As traditional financial investors look for regulated investment vehicles in the crypto space, ETFs have become a key conduit for accessing digital assets like AVAX, SOL, and XRP.

Looking Ahead

As the SEC continues to evaluate these applications, the approval of altcoin ETFs is expected to significantly impact the broader cryptocurrency market. If the VanEck Avalanche ETF, along with other altcoin-focused funds, receives approval, it could open the floodgates for further institutional investment in the crypto ecosystem. With Avalanche’s growing prominence and the continued maturation of the crypto investment space, this filing is another step toward integrating digital assets into mainstream financial markets.

Investors and analysts alike will be watching closely as these ETFs progress through regulatory reviews, with many anticipating a wave of new investment and a boost in market liquidity once these funds are approved.