VanEck Registers Avalanche ETF in Delaware, Sparks AVAX Recovery

• VanEck files for Avalanche ETF in Delaware, fueling AVAX optimism.
• Recent filing follows VanEck’s Solana and Bitcoin ETF registrations.
• AVAX price recovers as market interest rises, trading volume surges.

VanEck recently filed for an Avalanche ETF in Delaware, sparking anticipation of a potential spot ETF application. This move comes amid a broader market correction, where the price of AVAX dropped. The registration has led to speculation that VanEck may soon file for a spot Avalanche ETF with the SEC and possibly reverse AVAX’s downward price trend.

VanEck’s Avalanche ETF registration

VanEck has filed for Avalanche ETF which indicates its interest to expand its crypto investment product range. The firm has already received approval for Bitcoin, Ethereum, and Solana ETFs. This recent registration highlights VanEck’s commitment to the growth of the Avalanche ecosystem and its potential role in the crypto market.

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VanEck’s decision follows the broader trend of asset managers filing for various crypto ETFs after the SEC’s regulatory shift. Asset managers have become more comfortable with crypto ETF filings especially after Donald Trump’s win and subsequent changes in SEC leadership. VanEck’s focus to register the Avalanche ETF shows its belief in the blockchain’s future.

Avalanche has made major strides in tokenization which has strengthened its position in the crypto industry. The blockchain has partnered with major financial players such as JPMorgan and Mastercard for various projects. These collaborations are centered around portfolio management and blockchain applications which indicates Avalanche’s potential for institutional use.

The Avalanche blockchain’s focus on scalability and speed positions it as a competitor to Ethereum. The blockchain’s native token, AVAX, surged to the top 10 cryptocurrencies by market cap in 2021. As of now, AVAX holds the 20th spot, with a market capitalization of $7 billion.

Will AVAX Price Maintain its Recovery?

The price of AVAX has seen a decline of 55% this year although the recent ETF filing has led to a minor recovery. AVAX bounced back from lows of $15 to reach the levels of $17. This price movement has been fueled by increased market interest, while trading volume surged by approximately 100%.

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VanEck’s registration could influence the broader crypto market sentiment. If the firm files for a spot ETF, it may attract new investors to AVAX. Additionally, recent data shows an increase in new users on the Avalanche blockchain which further supports the optimism around the ecosystem.

However, the market remains cautious due to ongoing uncertainty in the broader crypto space. Bitcoin’s price correction continues to affect the market, and analysts continue to closely monitor macroeconomic indicators. The upcoming release of the U.S. CPI data could further impact the market’s trajectory in the coming weeks.