VanEck Files for AVAX ETF with SEC as Crypto ETF Competition Intensifies

-*VanEck applies for an Avalanche-based ETF with the US SEC - This application is expected to strengthen the connection between the cryptocurrency and traditional financial markets [Unblock Media] Global investment manager VanEck has applied to the US Securities and Exchange Commission for an Avalanche (AVAX) based exchange-traded fund (ETF). This application is expected to further strengthen the connection between the cryptocurrency market and traditional financial markets. Bloomberg analyst James Seyffart revealed the ETF filing by VanEck via social media. According to the application, the 'VanEck Avalanche ETF' aims to reflect the price performance of AVAX, the native token of the Avalanche network, and offer pure returns to investors excluding operational costs. The ETF plans to directly hold AVAX and evaluate its value daily. The application for this ETF demonstrates the continued interest of institutional investors in blockchain assets. AVAX, the native token of the Avalanche blockchain that supports decentralized applications and smart contracts, is expected to see increased accessibility within traditional financial markets if the ETF is approved. Since an ETF operates by tracking the price of a specific asset, the launch of an AVAX ETF is likely to have a direct impact on AVAX's price volatility. Historical cases show that the launch of the first Bitcoin futures ETF in the US in October 2021 caused a significant surge in Bitcoin's price, followed by increased volatility during adjustments. A similar scenario could occur with AVAX. Initially, the launch of the ETF might drive up AVAX's price due to increased attention from institutional and individual investors, but subsequent price adjustments may occur based on the disparity between market expectations and actual demand. The launch of the ETF is expected to significantly increase the liquidity of AVAX. Generally, ETFs provide a more familiar investment vehicle not only for institutional investors but also for individual investors who are not yet accustomed to the existing cryptocurrency market. This can increase accessibility to AVAX, boost trading volumes, and expand the market's liquidity. Increased liquidity has positive impacts from multiple perspectives. More active trading reduces bid-ask spreads, lowering transaction costs, and facilitating more efficient market price formation. Additionally, institutional investors will find it easier to include AVAX in their portfolios, contributing to the overall maturity of the cryptocurrency market. The application for VanEck's ETF signifies that cryptocurrencies are becoming an increasingly important asset class within traditional financial markets. Particularly, ETFs can offer a more familiar investment vehicle for investors who prioritize reliability and stability within the existing financial system. This suggests that not only AVAX but also other cryptocurrencies could gradually play a larger role in financial markets. Future attention will focus on whether the SEC approves the application and how the market responds. If VanEck's AVAX ETF gets approved, it could accelerate the institutionalization of the cryptocurrency market. Conversely, if it is not approved, it would reinforce the existence of regulatory obstacles for future cryptocurrency-based ETFs. As the integration between the cryptocurrency and traditional financial markets continues, the progress of the AVAX ETF will be closely watched to see how it influences the broader market.