Asset manager VanEck registered a trust company for an Avalanche (AVAX) exchange-traded fund in Delaware on Monday, mirroring moves made prior to its other spot crypto ETF forays.
The registration comes as other institutions in the U.S. race to offer new crypto products under the Securities and Exchange Commission’s now more crypto-friendly regime, covering larger digital assets like Solana, XRP, and Dogecoin, and more recently, smaller ones in spot ETF applications.
On Monday, Rex Shares and Osprey Funds submitted an application for an exchange-traded fund tracking the price of the native token of the Movement Network, MOVE. Last week, Canary Capital took an initial step toward an application for an ETF based on Sui.
With a market cap of $7 billion, Avalanche ranks 20th among digital assets other coins, according to the crypto data provider CoinGecko.
VanEck, which already offers spot Bitcoin and Ethereum ETFs in the U.S., was the first institution to file for a Solana ETF with the SEC, submitting a registration statement in June.
“VanEck seems to be taking a ‘throw everything at the wall and see what sticks’ approach, which makes sense,” Sumit Roy, senior ETF analyst at etf.com, wrote in a message to Decrypt. “Avalanche isn’t the most widely traded cryptocurrency, but being first to market with an ETF in a new category comes with potential upside and little downside.”
VanEck registration may not mean an ETF application is imminent. VanEck registered a trust company for its Solana fund in November 2021, when the asset changed hands at a pandemic-era peak of $259.
Avalanche was recently changing hands at around $17.17, down 5.5% over the past 24 hours and 14% drop over the past week amid a wider market downturn. In November 2021, Avalanche set an all-time high price of $145, while peaking around $60 last year.
Developed by Ava Labs, Avalanche is a platform composed of three interoperable blockchains that each serve a distinct function, whether that’s creating assets, engaging with smart contracts, or coordinating validators while creating so-called subnets.
During the pandemic-era crypto boom, Avalanche was considered an “Ethereum Killer” because of its similar functionality and focus on cheapness and speed. Avalanche’s networks currently house $1 billion in digital assets, according to the crypto data provider DeFiLlama.
VanEck did not immediately respond to a request for comment from Decrypt.
Edited by James Rubin