VanEck launches the first AVAX ETF in the US

The first US spot ETF for Avalanche (AVAX) with the ticker VAVX, issued by VanEck, has officially started trading on Nasdaq. The fund provides investors with direct exposure to AVAX price movements along with staking rewards, thereby expanding the digital asset ETF offerings in the US market.

A VanEck representative stated that Avalanche is one of the few smart contract platforms, alongside Ethereum and Solana, capable of meeting the throughput and customization needs that organizations will require as the tokenization trend accelerates. The company also plans to collaborate with the Avalanche team to develop educational materials to help traditional investors better understand the technology and risks.

VAVX will have no management fee until it reaches $500 million in assets or until February 28. After that, the fund will apply a 0.2% sponsor fee. In its first trading session, the fund’s price dropped over 2% to $24.06, while AVAX increased over 3% in the past 24 hours. However, this layer-1 token has still declined about 69% over the past year and is down 92% from its 2021 peak.

Ava Labs commented that the launch of VAVX is a significant step forward in helping institutions access the Avalanche network, reflecting the growing recognition of this blockchain in real-world enterprise and government applications.

The appearance of VAVX places AVAX among the group of altcoins with spot ETFs in the US, such as Solana, XRP, and Dogecoin. However, the digital asset ETF market has recently faced pressure as Bitcoin and Ethereum funds experienced significant outflows amid macroeconomic instability.