Global Investment Manager Vanek has applied for the Avalanche Exchange Trade Fund (ETF) with the US Securities and Exchange Commission (SEC), which seeks to provide investors with direct exposure to the smart contract platform.
The S-1 filing snippet was shared on social media on March 14 by Bloomberg analyst James Seyfert.
sauce: James Seifert
The proposed Vaneck Avalanche ETF is intended to “reduce the performance of “Avax”, the native token of the Avalanche network, to reduce the costs of trust operations.”
The proposed fund will hold Avax and “value stocks daily” based on the avalanche benchmark rate of reported market vectors, the prospectus said.
As Seyffart pointed out in a follow-up post, the trust registration was “widely shared” […] Earlier this week, this is my first actual submission to the SEC. ”
Avalanche is the 16th largest cryptocurrency, with a total market capitalization of $7.7 billion. Blockchain is notable for its high throughput and Ethereum Virtual Machine (EVM) compatibility.
Related: US Bitcoin ETF breaks outflow streak with $13.3 million inflow
ETF lace gets hot
The overwhelming success of US Spot Bitcoin (BTC) exchange trade funds and the election of a pro-cryptic administration in Washington have led to an influx of crypto fund applications in the SEC.
As Cointelegraph recently reported, nine issues have applied for the XRP (XRP) ETF, with Franklin Templeton taking part in the race on March 11th. The publisher is also competing to list ETFs linked to Solana (SOL), Litecoin (LTC), and Dogecoin (Doge).
The SEC has chosen to punt decisions on these products and specify a longer period for reviews, but Seifert and Bloomberg analyst Eric Baltinus says there is a “relatively high potential for approval” later this year.
A January report by JPMorgan said that approvals for the Altcoin ETF are likely to cause billions of dollars inflows, highlighting the pent-up demand for cryptocurrency. In particular, SOL and XRP products may be of the most institutional interest.
Given a moderate adoption rate, SOL and XRP ETFs could attract billions in the first 12 months. Source: JPMorgan
“If you apply these so-called 'adoption rates' to Sol and XRP, you can see that SOL is gathering net worth of around $3 billion to $6 billion and XRP has a net worth of $4 billion to $8 billion,” the report said.
Related: US Bitcoin ETF assets beat $100 billion
