Nasdaq has submitted an application to the Securities and Exchange Commission seeking approval to list and trade shares of VanEck's proposed Avalanche Trust, a spot exchange-traded fund that would offer investors indirect exposure to the AVAX cryptocurrency token. The filing marks another expansion of potential crypto-based investment products in traditional financial markets.
What to Know:
• Nasdaq's application would allow VanEck's Avalanche ETF to trade under Rule 5711(d), governing commodity-based trust shares • The ETF would give investors exposure to AVAX without requiring crypto wallets or digital trading platforms • VanEck has already filed for Bitcoin, Ether, and Solana ETFs, making this their fourth standalone crypto investment product
Exchange Seeks Approval Amid Growing Crypto ETF Offerings
Nasdaq's filing, signed by Executive Vice President and Chief Legal Officer John Zecca, specifically requests permission to list and trade shares under the exchange's Rule 5711(d).
This regulatory framework governs the trading of commodity-based trust shares on the exchange. If approved by regulators, the ETF would track AVAX prices while holding the actual tokens through a third-party custodian.
The proposed investment vehicle would enable market participants to gain financial exposure to Avalanche's price movements without directly holding the cryptocurrency. This structure mirrors existing commodity-based ETFs, allowing investors to benefit from the token's performance without navigating the technical complexities of crypto wallets or digital asset exchanges. According to the filing documents, VanEck Digital Assets will serve as the trust's sponsor.
"The trust will hold Avalanche tokens and will track the performance of the asset's price," states the application, which outlines how all cryptocurrencies would be secured by an independent custodian on behalf of the trust.
VanEck Expands Crypto ETF Portfolio as Competition Grows
The application represents VanEck's latest effort to broaden its cryptocurrency ETF offerings. On March 10, the asset manager registered the Avalanche investment product as a trust corporate service company in Delaware, laying groundwork for the formal SEC submission.
This regulatory approach has become standard practice for firms developing cryptocurrency exchange-traded products.
VanEck has positioned itself among the most active traditional finance firms pursuing crypto ETFs. The Avalanche product marks the company's fourth standalone cryptocurrency ETF submission, joining previous filings for Bitcoin, Ether, and Solana-based investment vehicles. The asset manager became one of the first issuers to file for a Solana ETF earlier in 2024, demonstrating its aggressive strategy in the emerging sector.
The firm's formal application for the Avalanche ETF became public on March 14 when documents circulated on social media platforms. This disclosure revealed VanEck's continued commitment to expanding its crypto-based financial products despite market volatility.
Grayscale Investments has emerged as a direct competitor in the Avalanche ETF space. On March 28, Nasdaq submitted a separate application to list Grayscale's AVAX-based ETF. Unlike VanEck's new product, Grayscale's offering would convert an existing close-ended AVAX fund that launched in August 2024.
The growing interest in Avalanche-based investment products comes despite significant price challenges for the token. AVAX traded at approximately $18 on April 10, representing a 56% decline from its January high of $41. This sharp devaluation occurred amid broader cryptocurrency market downturns throughout early 2025.
Industry analysts note that traditional finance continues pursuing cryptocurrency investment vehicles despite market volatility, suggesting institutional confidence in the long-term viability of digital assets as an investment class. However, regulatory approval remains the critical hurdle for these products reaching the market.
Closing Thoughts
The expanding field of cryptocurrency ETF applications signals growing institutional interest in providing regulated access to digital assets. Despite AVAX's recent price struggles, financial firms continue developing products that would bring cryptocurrency exposure to traditional investment portfolios through familiar, regulated structures.