Global investment manager VanEck has filed for an exchange-traded fund (ETF) linked to the cryptocurrency Avalanche (AVAX), aiming to provide investors with direct exposure to the smart contract platform.
VanEck's ETF Application
VanEck's proposal for an ETF for AVAX was filed with the US Securities and Exchange Commission. Bloomberg analyst James Seyffart shared a snippet of the document on social media on March 14, highlighting its significance for the crypto industry.
Goals and Functions of the New Fund
According to the prospectus, the new VanEck fund aims to reflect the performance of the AVAX price, the native token of the Avalanche network. The fund will value its shares daily based on the MarketVector Avalanche Benchmark Rate.
Reaction and Market Impact
The emergence of a new ETF may increase investor interest in the Avalanche platform and contribute to its growing popularity. Market experts are closely monitoring developments in this area.
If approved, VanEck's new fund could significantly impact the cryptocurrency market by providing investors with a new tool to engage with AVAX.
