The U.S. Securities and Exchange Commission (SEC) has received Bitwise’s S-1 form, asking for permission to create a spot exchange-traded fund (ETF) for Avalanche (AVAX).
Bitwise joins VanEck and Greyscale in trying to give U.S. investors easy and legal access to AVAX tokens. These companies filed for Avalanche ETFs earlier this year. This competition arises from a growing interest among retail investors, hedge funds, and family offices who want to invest in reliable blockchain projects, especially those with strong smart contract platforms and active development communities like Avalanche.
The Bitwise ETF allows investors to hold AVAX tokens directly instead of using derivatives. It operates as a Delaware statutory trust, letting investors track the real-time spot price. Coinbase Custody, a regulated organization under New York banking law, will safeguard all assets. This ensures secure cold storage and keeps client funds separated.
How the AVAX ETF Will Work
The ETF, if approved, will compute its net asset value (NAV) using the CME CF Avalanche–Dollar Reference Rate, an industry-standard benchmark derived from trading across key platforms and released daily at 4 PM ET.
Blocks of 10,000 shares, referred to as “baskets,” can be issued and redeemed, and settlement options will include cash or AVAX tokens.
Bypassing the need to handle wallets or keys or deal directly with cryptocurrency exchanges, investors will be able to obtain Avalanche price exposure through traditional broking accounts, a significant benefit for organisations that prioritise compliance.
Regulatory Conditions
The SEC’s review extension on comparable ETF proposals has Bitwise’s submission following. It also coincides with an acceleration of adoption in the DeFi and enterprise verticals on Avalanche, including active treasury activities from the Avalanche Foundation looking for $1 billion in fresh investment.
As was the case with previous ETF launches for Bitcoin and Ethereum, analysts anticipate that the approval of the ETF may spur new institutional flows and liquidity for AVAX.
With its scalable consensus, subnet construction, staking possibilities, and quick transaction speeds, Avalanche continues to make a strong case as a top altcoin that attracts developers and investors from all over the world.
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