VanEck Seeks SEC Approval for Avalanche ETF Following Crypto Policy Shifts

VanEck, a prominent asset management firm, has submitted a filing to the U.S. Securities and Exchange Commission (SEC) seeking approval for the launch of the VanEck Avalanche ETF. This ETF aims to track the price of Avalanche's native token, AVAX, providing investors with a new avenue to gain exposure to the cryptocurrency market. The filing, submitted on March 14, 2025, outlines the structure and objectives of the VanEck Avalanche ETF, which will issue common shares of beneficial interest expected to be listed on an exchange under a ticker symbol yet to be determined.

The VanEck Avalanche ETF is designed to reflect the performance of AVAX, less the expenses of the Trust's operations. The Trust will hold AVAX and value its shares daily based on the MarketVectorTM Avalanche Benchmark Rate, which is calculated using prices from top AVAX trading platforms as identified by MarketVector Indexes GmbH. This benchmark rate is constructed and maintained based on the CCData Centralized Exchange Benchmark review report, ensuring a reliable and transparent valuation method.

VanEck Digital Assets, LLC, a subsidiary of Van Eck Associates Corporation, will sponsor the Trust. The Trustee will be Delaware Trust Company, and the custodian will be responsible for holding all of the Trust's AVAX. The Trust will not utilize leverage, derivatives, or similar arrangements in its investment strategy, focusing solely on tracking the price of AVAX. Additionally, the Trust may engage in staking activities through trusted staking providers, potentially earning staking rewards of AVAX tokens, which will be treated as income to the Trust.

The filing also highlights the risks associated with investing in the Trust, emphasizing that the value of AVAX and, consequently, the value of the Trust's shares, could decline rapidly, including to zero. Investors are advised to consider all risk factors before investing in the Trust. The offering of the Trust's shares is registered with the SEC in accordance with the Securities Act of 1933, and the Trust is not registered under the Investment Company Act of 1940 or subject to regulation under the Commodity Exchange Act of 1936.

The VanEck Avalanche ETF represents a significant development in the cryptocurrency investment landscape, offering investors a regulated and transparent way to gain exposure to AVAX through a traditional brokerage account. By providing direct exposure to AVAX and eliminating the complexities and risks associated with holding or transferring AVAX directly, the Trust aims to attract a broader range of investors, including those seeking to implement strategic and tactical asset allocation strategies that incorporate AVAX.

This push comes after the SEC approved the listing of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs in July 2024 under the previous administration, signaling a shift toward more crypto-related investment products being allowed in the market. In just a few weeks, the agency reversed its controversial crypto accounting rules, dropped enforcement actions against major crypto players, created a crypto task force, and even issued a statement on memecoins. This shift indicates a more open approach to the crypto space.

Several firms are seeking the SEC’s approval for different types of cryptocurrency ETFs, such as ones tracking SOL (Solana), XRP (Ripple), DOGE (Dogecoin), and LTC (Litecoin). Avalanche’s strong track record, including its role in Franklin Templeton’s tokenized fund, could help boost its chances for approval.