VanEck's first U.S. spot Avalanche (AVAX) exchange-traded fund recorded zero net inflows on its opening day of trading Monday, a stark signal that investors remain unwilling to chase altcoin exposure amid persistent macroeconomic uncertainty.
What Happened: AVAX ETF Launches to Muted Response
The VanEck Avalanche ETF began trading on Nasdaq on Jan. 26 under the ticker VAVX, with the asset manager waiving all sponsor fees on the fund's first $500 million in assets until Feb. 28, 2026. After that period, the ETF will carry a 0.20% sponsor fee.
Data showed the fund posted roughly $333,970 in trading volume on its debut, with total net assets reaching $2.41 million. The fund attracted no net capital inflows during the session.
The subdued launch contrasts with optimism that followed Donald Trump's return to the White House, when asset managers rushed to file altcoin ETF applications. That enthusiasm has since cooled as geopolitical tensions and macroeconomic pressures push investors toward defensive positioning.
Other crypto ETFs fared better Monday. Bitcoin (BTC) funds pulled in $6.84 million, snapping a five-day outflow streak, while Ethereum (ETH) ETFs attracted $116.99 million. XRP (XRP), Solana (SOL), Dogecoin (DOGE), and Chainlink (LINK) ETFs saw modest inflows, though Litecoin (LTC) and Hedera (HBAR) funds recorded none.
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Why It Matters: Adoption Depth in Question
Crypto influencer Zia ul Haque said the zero-inflow debut was telling. "Wall Street can list the ETF, but if investors aren't moving capital, it shows Avalanche adoption is still shallow and traders are waiting for real catalysts," he stated.
The launch timing drew criticism from other market observers. Trader Greeny called it a "horrible time to launch an altcoin ETF," noting AVAX has been making new macro lows weekly.
Still, some analysts see long-term potential. Kaleo argued the ETF could become meaningful once broader market conditions improve.
On-chain data presents a different picture: daily active users on Avalanche's C-Chain surged nearly 2,000% in January. That divergence between network activity and investment flows underscores how short-term ETF performance remains tied to macro conditions rather than fundamental adoption metrics.
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