Market News

Bitwise Moves Forward with SEC Registration for Avalanche ETF

Bitwise Asset Management has taken a significant step by filing for SEC registration of a spot Avalanche ETF, joining other notable firms like VanEck and Grayscale in the effort to provide institutional investors with access to AVAX.

This passively managed fund is designed to track the value of Avalanche while minimizing operational costs, with Coinbase Custody appointed as the custodian for the digital assets.

The fund will be structured as a Delaware statutory trust, ensuring cost-effective exposure to Avalanche in traditional securities markets by holding only AVAX tokens.

Bitwise's filing arrives in the wake of previous submissions by VanEck and Grayscale, both of which are also working to bring Avalanche-focused ETFs to market.

Meanwhile, the Avalanche Foundation is actively raising $1 billion through two treasury vehicles, an initiative backed by prominent firms like Hivemind Capital and Dragonfly Capital.

Despite a cautious stance by the SEC regarding altcoin ETFs, industry analysts remain hopeful, especially given the growing institutional interest and demand for products beyond Bitcoin and Ethereum.

The SEC's decision process includes public comment periods, allowing stakeholders to express their views on proposed ETFs before final approvals are issued.

As of now, AVAX is trading at approximately $29.91, nearing a significant technical resistance level, and is poised for potential price movements driven by the ETF filing news.

The positive sentiment surrounding AVAX is further supported by its technical patterns and strong recovery from previous cycle lows, suggesting a bullish outlook if sustained trading above critical levels continues.

Overall, the developments surrounding Bitwise's ETF filing and the heightened institutional engagement signal an encouraging horizon for Avalanche and its investors.