The cryptocurrency market is witnessing yet another major development as VanEck, a renowned asset manager, has filed for an Avalanche (AVAX) exchange-traded fund (ETF). According to public records from the Delaware state website, the filing was submitted on March 10 under the name “VanEck Avalanche ETF.”
Growing Trend of Crypto ETFs
The move aligns with the increasing adoption of cryptocurrency ETFs. The U.S. Securities and Exchange Commission (SEC) approved 11 spot Bitcoin (BTC) ETFs in January 2024, followed by Ethereum (ETH) ETFs. This trend indicates a shifting regulatory landscape that could open doors for more crypto-based ETFs, including AVAX.
Despite the benefits of ETFs in offering a regulated investment vehicle for crypto exposure, recent weeks have seen significant outflows. Market sentiment was dampened by the U.S. government’s decision to impose tariffs on multiple nations, leading to a downturn in Bitcoin, Ethereum, and other major cryptocurrencies. However, if global economic conditions stabilize, investor confidence could return, boosting AVAX’s price.
AVAX ETF: Bullish or Bearish?
The filing of the AVAX ETF is undoubtedly a bullish indicator. If approved, it could fuel increased demand, similar to how Bitcoin surged past $73,000 in early 2024 after the launch of spot BTC ETFs. However, history suggests that ETF approvals do not always result in immediate price spikes. Ethereum’s ETF launch had a minimal impact on ETH’s price, raising concerns that AVAX might follow a similar trajectory unless broader market conditions turn bullish.
Avalanche Price Predictions
Market predictions for AVAX remain divided. According to CoinCodex, AVAX is expected to decline by 24.14%, reaching $13.73 by May 24, 2025. However, an alternative scenario exists: if institutional investment returns and macroeconomic factors improve, AVAX could reclaim the $30 mark, representing a 56% surge from current levels.
The filing of the VanEck Avalanche ETF highlights growing institutional interest in AVAX. However, key factors such as investor sentiment, regulatory developments, and economic conditions will play a crucial role in determining its impact. Traders should monitor ETF approval updates and overall market trends for potential trading opportunities.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
Also Read: VanEck Files for Avalanche ETF: Can AVAX Rebound After Market Crash?
