Launch Spot Avax ETF to Vaneck Files S-1 application

Vaneck has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for the proposed Avalanche Exchange Transaction Fund (ETF), aiming to provide investors with direct exposure to Avax.

According to filing, the Vaneck Avalanche ETF holds Avax directly and evaluates stocks based on Marketvector Avalanche benchmark rates, which aggregate pricing data from the five largest trading platforms, as determined by CCDATA's Exchange Benchmark report.

The filing demonstrates the company's intention to expand its crypto investment product lineup following Vaneck's recent avalanche ETF registration in Delaware.

Vaneck has not yet disclosed the ticker symbol for the ETF.

AltCoin ETF gains momentum

This move comes as asset managers push ETFs linked to cryptocurrency beyond Bitcoin and Ethereum.

The SEC approved the Spot Bitcoin ETF in January, and recently gave green light to its Ethereum-based products, so companies are investigating the potential of ETFs backed by alternative digital assets.

Bloomberg ETF analysts provide approval odds for various Altcoin-based ETFs, estimate the 90% chance of Litecoin, and XRP and Solana have lower probability.

Avalanche's track record may support claims for approval, including use in financial innovations such as Franklin Templeton's Tokenized Fund.

Regulatory environment

The SEC has historically approached crypto ETFs with caution, citing concerns about market manipulation and investor protection.

However, changing regulatory attitudes under President Donald Trump's administration and the establishment of the Cryptody Task Force has led to increased expectations for a more openness towards digital asset products.

While SEC's response to Vaneck's Avalanche ETF remains uncertain, analysts are looking at test cases and the company's applications for a wider adoption of Altcoin ETF.

If approved, the doors of additional blockchain-based investment vehicles can be opened and cryptocurrencies can be further integrated into traditional finance.

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