VanEck files to create an Avalanche ETF, building off its Trust filing three days ago. The company has attempted a few niche ETF products recently, and this is the first AVAX-related effort.
However, both AVAX and the broader ETF market are suffering from bearish fears. Even if this product gets SEC approval, it might not receive substantial inflows until the spell passes.
VanEck’s Avalanche ETF
Since Gary Gensler resigned as SEC Chair, the Commission has seen a huge uptick in ETF applications. This has involved a slew of popular altcoin ETF options, such as Solana and XRP, as well as a few more obscure ones.
Today, VanEck filed to create an ETF based on Avalanche (AVAX), the first proposal of its kind.
“The VanEck Avalanche ETF is an exchange-traded fund that issues common shares of beneficial interest that are expected to be approved for listing, subject to notice of issuance. The Trust’s investment objective is to reflect the performance of the price of AVAX, the native token of the Avalanche network,” VanEck’s filing read.
VanEck first registered an Avalanche ETF Trust in Delaware three days ago, and the firm moved quickly with this second document. The investment management firm has recently tried a few different experimental ETF constructions.
For example, in January, the firm filed an ETF based on crypto exchanges, mining firms, and payment gateways. If approved, this unique fund would invest in a pool of different crypto companies.
VanEck may be trying a few different ETF configurations, but its Avalanche product still might be a long shot. The price of AVAX has suffered massive losses in 2025 despite reaching a two-year high in TVL last December.
Still, the VanEck announcement caused AVAX to trend upward over 4%, so this filing could be bullish.
Meanwhile, the crypto ETF market has felt the full blow of the current market cycle. Bitcoin ETFs saw five consecutive weeks of net outflow. Ethereum funds also saw similar sentiment among institutional investors.
At the same time, the SEC has delayed approval of several filings, including Solana and XRP ETFs. Credible fears of a US recession are causing bearish sentiment all over the crypto space, and it doesn’t seem to be letting up.
If VanEck’s new product does win SEC approval, it could be useful in the future, but its market might be small today.
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