Crypto Market Plummets 52% as VanEck Registers Avalanche ETF

In February 2025, the cryptocurrency market experienced a severe selloff, primarily driven by macroeconomic concerns and the collapse of a bitcoin carry trade. This downturn was marked by poor performance across cryptocurrency ETFs, with the Monochrome Ethereum ETF being one of the most notable underperformers. The broader market trend saw significant declines in both crypto and US stocks, with US stocks losing over $1.75 trillion in value on March 10, 2025.

The digital asset market also witnessed a substantial outflow of $4.75 billion, leading to the lowest assets under management (AUM) in recent months. This outflow was predominantly driven by US investors, who accounted for $876 million in crypto outflows as Bitcoin prices plummeted. Despite political support for Bitcoin, the market's negative sentiment persisted, contributing to the overall decline.

Amidst the market downturn, VanEck made a strategic move by registering an Avalanche ETF in the US. This registration, filed in the state of Delaware on March 10, 2025, suggests that VanEck may soon file an S-1 form with the US Securities and Exchange Commission (SEC) for an official spot AVAX ETF. This move comes at a time when Avalanche’s token, AVAX, has seen a significant decline, with a year-to-date drop of nearly 52% and a 10% decrease in the past 24 hours. The filing indicates VanEck's continued interest in the altcoin ETF market, following its previous filings for a Solana ETF and other altcoin ETFs.

The registration of the Avalanche ETF is part of a broader trend of various ETF altcoin applications in recent months. Other issuers have also filed for spot ETFs, including XRP, Litecoin, Hedera, and Dogecoin. This flurry of activity suggests that the market is preparing for potential regulatory approvals and increased investor interest in altcoin ETFs.

The broader market trends and the specific challenges faced by cryptocurrency ETFs highlight the volatility and uncertainty in the digital asset market. The significant outflows and declines in asset values underscore the need for cautious investment strategies and a close watch on regulatory developments. VanEck's move to register an Avalanche ETF, despite the current market