Asset manager Vaneck has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Vaneck Avalanche ETF, a first-of-its-kind fund designed to track the market price of AVAX, the native token of the Avalanche blockchain.
Vaneck’s New ETF Proposal Aims to Bring Avalanche’s AVAX to Traditional Markets
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Vaneck Seeks SEC Approval for a Spot AVAX ETF
Vaneck’s proposed exchange-traded fund (ETF) would hold AVAX directly and reflect its performance minus operating expenses, according to a March 14 S-1 filing. Unlike futures-based crypto ETFs, the trust would custody the token through regulated third-party providers and value shares daily using a benchmark rate compiled from top trading platforms. The fund’s structure avoids derivatives, leverage, or hedging strategies, positioning it as a passive vehicle for investors seeking exposure to AVAX without managing digital wallets.
Shares would be issued in blocks called “Baskets,” with transactions facilitated by authorized participants in cash or in-kind transfers. The trust plans to list on an undisclosed U.S. exchange under the ticker symbol “AVAX,” though the SEC has not yet approved the application. Vaneck emphasized that the ETF would not engage in staking activities, potentially diverging from returns achievable by direct AVAX holders.
Key service providers include Marketvector Indexes, a Vaneck subsidiary, which calculates the fund’s benchmark rate using data from five major exchanges vetted by crypto analytics firm CCData. Delaware Trust Company would serve as trustee, while custody partners would store AVAX in geographically distributed cold wallets insured against theft or hacking. The filing notes that custodial insurance may not cover full losses, a risk common to digital asset products.
Risks highlighted in the prospectus include AVAX’s volatility, potential blockchain forks, regulatory uncertainty, and cybersecurity threats. The document warns that investors could lose their entire investment, citing historical examples like the 2022 collapse of FTX and subsequent crypto market turbulence. Unlike SEC-registered investment companies, the trust would not offer protections under the Investment Company Act of 1940.
The filing arrives as the SEC delays decisions on multiple spot altcoin ETF applications. While the agency approved bitcoin futures ETFs in 2021, former SEC Chair Gary Gensler repeatedly raised concerns about crypto market manipulation and custody risks before he resigned as SEC chief. Things have changed a great deal under the Trump administration. Vaneck, which manages billions in assets, has been a crypto ETF pioneer, launching a U.S. bitcoin futures ETF in 2021 and a short bitcoin strategy ETF in 2022.
Avalanche’s AVAX has a market capitalization of $7.72 billion as of mid-March 2025, ranking among the top 20 cryptocurrencies. Approval of the ETF could broaden institutional access to the token, which powers smart contracts on Avalanche’s layer one (L1) blockchain. The SEC typically takes 45–90 days to respond to initial S-1 filings, though crypto-related products often face extended reviews.
