SEC Evaluates VanEck's AVAX ETF; AVAX Rises 2% Amid Regulatory Review

The U.S. Securities and Exchange Commission (SEC) has initiated proceedings to evaluate the proposed listing of VanEck’s Avalanche (AVAX) crypto exchange-traded fund (ETF) on Nasdaq. The agency announced its decision to seek public comments on the ETF’s listing application, which was filed on April 9 and published in the Federal Register on April 29. The proceeding does not signal the SEC’s approval or disapproval of the proposal but reflects the legal and policy considerations raised by the rule change [1]. The final decision on the ETF’s approval is now expected by December 12, extending the deadline previously set in June [2].

VanEck’s ETF, designed to track the spot price of AVAX via the MarketVector Avalanche Benchmark Rate Index, would be structured as a commodity-based trust under Nasdaq Rule 5711(d). The SEC noted that the process is necessary to address unresolved issues, such as regulatory alignment with existing frameworks for traditional ETFs [1]. The agency received only one public comment supporting the ETF under commodity listing rules, highlighting the contentious nature of crypto ETF approvals [2].

Grayscale, another major player, also submitted an Avalanche ETF application in March, further intensifying the regulatory spotlight on AVAX. Analysts Eric Balchunas and James Saiffart estimate a 90% approval probability for the ETF, citing its potential to mirror recent successes in Bitcoin and Ethereum ETFs [2]. Meanwhile, VanEck has expanded its blockchain investment initiatives, launching the PurposeBuilt Fund to support Avalanche-based projects [1].

Market analysts remain optimistic about AVAX’s price trajectory. Ali Martinez, a crypto analyst, projected a potential rise to $36 if the token breaks above $27, emphasizing reduced transaction costs post-Octane upgrade and growing adoption in decentralized finance (DeFi), gaming, and enterprise sectors [3]. Current data shows AVAX trading at $23.77, up 2% after a broader crypto market downturn. Technical indicators, including a 50-day simple moving average (SMA) crossover and a 60 RSI reading, suggest further upside potential [3].

Derivatives markets reflect bullish sentiment, with AVAX futures open interest increasing by 5% in four hours, driven by significant buying on exchanges like Binance, OKX, and Bybit. However, a 25% drop in 24-hour trading volume indicates waning short-term interest amid volatility. CoinGlass data underscores the derivatives market’s role in amplifying price momentum, though long-term outcomes remain tied to SEC rulings and broader market conditions [3].

The SEC’s engagement with crypto ETFs signals a pivotal shift in regulatory attitudes, balancing innovation with investor protection. While the VanEck and Grayscale applications underscore AVAX’s institutional appeal, the final approval will depend on resolving ongoing debates about crypto asset classification and market integrity.

Source: [1] [Breaking: SEC Starts Proceedings on VanEck Avalanche Crypto ETF, AVAX Price to $36] [https://coinmarketcap.com/community/articles/6883892b964c4a7078a33a55/][2] [Breaking: SEC Starts Proceedings on VanEck Avalanche Crypto ETF, AVAX Price to $36] [https://coinmarketcap.com/community/articles/6883892b964c4a7078a33a55/][3] [Breaking: SEC Starts Proceedings on VanEck Avalanche Crypto ETF, AVAX Price to $36] [https://coinmarketcap.com/community/articles/6883892b964c4a7078a33a55/]