- SEC review begins for VanEck’s spot AVAX ETF, marking a step toward Avalanche’s institutional adoption.
- Proposed ETF offers direct AVAX exposure, with staking options and NAV-linked pricing.
- AVAX price rises 4% to $22.53 as market activity surges amid ETF momentum.
VanEck’s spot Avalanche (AVAX) exchange-traded fund (ETF) has received an official confirmation from the US SEC. The acknowledgment officially starts the regulatory review process and formally puts the proposal to evaluation. Although this step does not ensure government approval, it does mean the SEC will review the app’s compliance with current regulatory standards and market structures.
VanEck submitted an application in March 2025 to launch the first ETF directly tracking AVAX price. The proposed ETF aims to offer direct exposure to Avax focusing on high transaction speed and low transaction fees. The fund’s share value shall be based on the MarketVector Avalanche Benchmark Rate, a pricing index representing real-time AVAX price based on top trading platforms, as determined by MarketVector Indexes GmbH.
Key Features of the Proposed Fund Structure
The VanEck Avalanche ETF is a type of Trust, the application states is structured to create shares that will list on a national securities exchange in exchange for a designated ticker symbol upon approval. The aim of the fund is to match AVAX market price, less operational expenses. The Trust will have a custodian, to be determined who keeps Avax in its custody.
AVAX can be staked by the Trust through reputable staking providers, such as Sponsor affiliates, in exchange for staking rewards. These rewards may be taxed in the Trust as income. The fund does not provide any implicit entitlement to tokens because of network forks, airdrops, or any other incidental rights.
ETF shares will be created and redeemed in baskets (either in cash or in-kind) by Authorized Participants (APs). Cash transactions incur the Trust as paying the corresponding AVAX from a liquidity provider, in contrast to in–kind transactions, where AVAX is transferred directly between the Trust and the participant. Market demand and other factors may cause the Trust’s shares to trade at a premium or a discount to the net asset value.
Over the past 24 hours AVAX token price surged by 4.00% to $22.53. Trading volume also saw growth, increasing by 19.94% to $488.1 million, indicating intensifying market activity and demand. Market cap increased to $9.37B as the volume-to-market cap ratio stood healthy at 5.21%.
Potential Market Impact and SEC Oversight
They will be subject to the SEC review, which will weigh factors such as the market manipulation risks, investor protection protocols and compliance with anti money laundering rules. This period will allow stakeholders to comment on potential market implications of the ETF and will seek public comments.
Potential approval of the VanEck spot AVAX ETF could provide Avalanche with further institutional access and exposure that would increase broader market participation. The approval of this application marks a broader trend towards institutionalizing of digital assets after recent approvals of spot products on Bitcoin and Ethereum.
