Market News

First US Avalanche ETF Launched by VanEck, Introducing AVAX to Investors

The first exchange-traded fund (ETF) in the U.S. to track Avalanche's native token, AVAX, was launched by VanEck on Monday.

This innovative fund, trading under the ticker symbol VAVX, promises to provide investors with exposure to both the price returns and potential staking rewards of AVAX.

Avalanche, a blockchain created by Ava Labs in 2020, aims to enhance crypto scalability, interoperability, and usability, and is known for its smart contract capabilities.

According to Kyle DaCruz, VanEck's Director of Digital Assets, Avalanche serves as a crucial link between traditional finance and blockchain technology.

He noted that Avalanche's structure is specifically designed to offer verifiable, real-world utility, making it a unique platform in the crypto space.

Currently, AVAX ranks as the 33rd-largest cryptocurrency by market capitalization, as reported by The Block.

To incentivize investment, VanEck is waiving sponsor fees for the first $500 million in assets or until February 28, whichever arrives first.

Once this threshold is reached, a sponsor fee of 0.20% will apply.

The VanEck Avalanche ETF adds to the firm’s growing list of crypto ETFs that have previously included those tracking bitcoin, Ethereum's ETH, and Solana's SOL.

This launch marks a significant step forward in the integration of blockchain and traditional financial ecosystems.