VanEck, a global investment manager, has submitted a filing with the SEC for an exchange-traded fund (ETF) for the Avalanche platform.
VanEck Application Filed
VanEck has submitted an official application to the U.S. Securities and Exchange Commission (SEC) to establish an ETF linked to the Avalanche network. Bloomberg analyst James Seyffart reported this on March 14, noting the significance of this application amidst the development of the crypto-ETF market.
Purpose of the Avalanche ETF
The purpose of this ETF is to provide investors with direct exposure to the Avalanche smart contract platform. The fund aims to reflect the performance of the AVAX token, which is the native currency of the Avalanche network. According to the prospectus, the fund will hold AVAX and determine its share value daily based on the MarketVector Avalanche Benchmark Rate.
Significance of Avalanche and Recent Developments
Avalanche currently ranks 16th among cryptocurrencies, with a market capitalization of $7.7 billion. The platform is recognized for its high transaction throughput and compatibility with the Ethereum Virtual Machine, making it an attractive option for developers and investors. Recently, World Liberty Financial (WLFI), led by former President Donald Trump, purchased $2 million worth of AVAX tokens.
The formation of an ETF for Avalanche by VanEck could strengthen the platform's market position and increase investor interest in the network and its native token, AVAX.
