The U.S. Securities and Exchange Commission (SEC) has received Bitwise’s S-1 form. It requests permission to introduce a spot exchange-traded fund (ETF) for Avalanche (AVAX).
In the competition to provide U.S. investors with simple, legal access to AVAX tokens, Bitwise joins VanEck and Greyscale. The companies who have already filed for Avalanche ETFs earlier this year. This competition is due to growing demand from retail investors, hedge funds, and family offices looking to diversify into reputable blockchain projects. This is particularly those with strong smart contract platforms and international development communities like Avalanche.
By holding AVAX tokens directly rather than through derivatives, the Bitwise ETF—which is set up as a Delaware statutory trust—enables investors to follow the underlying spot price. A regulated organisation under New York banking law, Coinbase Custody will preserve all assets, guaranteeing institutional-grade cold storage security and client fund segregation.
How the ETF Will Work
The ETF 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 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 keeps making a strong case as a top altcoin that attracts developers and investors from all over the world.
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