Crypto asset manager Bitwise is seeking to launch a new exchange-traded fund (ETF) that would track AVAX, the native token of the Avalanche blockchain. The firm submitted an S-1 filing with the U.S. Securities and Exchange Commission (SEC) on Monday, outlining a product that would hold AVAX tokens directly and use Coinbase as its custodian.
The proposed ETF aims to give investors a traditional, regulated way to get exposure to Avalanche without the complexities of buying and holding the asset themselves.
“The Trust provides investors with the opportunity to access the market for Avalanche through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding Avalanche directly,” Bitwise stated in its filing.
The move by Bitwise comes as the competition to list single-asset crypto ETFs intensifies. Rival crypto firms Grayscale and VanEck have also filed to launch their own spot AVAX funds. Bitwise has previously filed for ETFs tracking other major tokens, including Chainlink (LINK) and XRP.
Avalanche Gains Institutional Interest
The filing for a spot Avalanche ETF highlights the blockchain’s growing institutional adoption. Avalanche’s network has become a popular choice for tokenizing assets, with major financial players like Apollo and BlackRock already using the platform for on-chain fund trials.
In a related development, the Avalanche Foundation recently announced plans to raise $1 billion to create two U.S.-based companies that would purchase AVAX tokens at a discount. This initiative is another effort to provide institutional investors with alternative, regulated avenues into the Avalanche ecosystem.
These filings, while not guaranteed to be approved by the SEC, signal increasing mainstream interest in cryptocurrencies beyond just Bitcoin and Ethereum.
