VanEck Registers Avalanche ETF Amid 55% Year-to-Date AVAX Decline

VanEck, a prominent global investment management firm, has registered an Avalanche exchange-traded fund (ETF) in the U.S. state of Delaware. This registration, which occurred on March 10, is significant as it marks the firm's fourth standalone crypto ETF registration in Delaware, following previous filings for Bitcoin, Ether (ETH), and Solana (SOL). The new product, named "VanEck Avalanche ETF," was registered as a trust corporate service company under filing number 10125689. This move signals VanEck's continued interest in the cryptocurrency market and its commitment to expanding its offerings in this space.

The registration comes at a time when the crypto market is experiencing a significant sell-off. Avalanche's native token, AVAX, has seen a substantial decline, dropping 55% year-to-date. This market downturn has not deterred VanEck from pursuing its plans for a spot AVAX ETF, which could potentially drive significant interest and investment in the Avalanche ecosystem. The firm's history in the crypto ETF space is notable; it was among the first issuers to file for a futures Bitcoin ETF in 2017 and has since become a major player in the crypto ETF market.

Avalanche, launched in 2020 by Ava Labs, is a multichain smart contract and decentralized app launch platform designed to rival the speed and scalability of Ethereum. AVAX, the native utility token of the Avalanche platform, reached the top 10 largest crypto assets by market capitalization in 2021. Despite the recent market downturn, AVAX remains a significant player in the crypto space, currently ranking as the 20th largest crypto asset with a market cap of $7 billion.

VanEck's registration of the Avalanche ETF is a strategic move that could pave the way for increased institutional interest in AVAX. The firm's previous filings for crypto ETFs, including Bitcoin, Ether, and Solana, have demonstrated its commitment to providing investors with diverse options in the digital asset space. This latest registration for an AVAX ETF further solidifies VanEck's position as a leader in the crypto ETF market and highlights the growing institutional interest in digital assets.

This move by VanEck is part of a broader trend in the U.S.