An investment management firm has submitted an application to the US Securities and Exchange Commission (SEC) for an Avalanche (AVAX) exchange-traded fund (ETF), aiming to provide investors with direct access to the smart contract platform.
A portion of the S-1 filing was shared on social media on March 14 by an analyst who has been closely following the trend of crypto ETFs.
Image credit: Analyst
The proposed ETF aims to “mirror the performance of the AVAX token’s price, the native digital currency of the Avalanche network, minus the operational expenses of the Trust,” according to the prospectus.
This fund will hold AVAX and will “determine the value of its Shares on a daily basis using the reported MarketVector Avalanche Benchmark Rate,” the prospectus also indicated.
The analyst mentioned in a subsequent update that the Trust’s registration “was widely shared earlier this week, but this marks the first official filing with the SEC.”
Avalanche currently ranks as the 16th largest cryptocurrency, boasting a market capitalization of $7.7 billion. The blockchain is recognized for its impressive transaction capabilities and compatibility with the Ethereum Virtual Machine (EVM).
Related: US Bitcoin ETFs see a reversal in outflows with a $13.3 million inflow
Intensifying competition in the ETF arena
The tremendous success of spot Bitcoin (BTC) ETFs and the rise of a supportive crypto administration in Washington have led to a surge in crypto fund applications being submitted to the SEC.
As previously reported, nine issuers have sought approval for an XRP (XRP) ETF, with Franklin Templeton entering the competition on March 11. Other issuers are also competing to launch ETFs linked to Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE).
While the SEC has delayed its ruling on these applications, granting more time for review, analysts indicate that there are “relatively high odds of approval” in the coming year.
A report released in January projected that the approval of altcoin ETFs could lead to billions in new inflows, emphasizing the strong demand for cryptocurrencies. SOL and XRP products, in particular, are expected to draw significant institutional interest.
If adoption rates are modest, SOL and XRP ETFs could attract billions in their first year. Source: Financial Report
“Applying these so-called ‘adoption rates’ to SOL and XRP suggests that SOL could gather approximately $3 billion to $6 billion in net assets, while XRP could amass between $4 billion to $8 billion in net new assets,” the report detailed.
Related: US Bitcoin ETF assets surpass $100 billion