Avalanche ETF application has been submitted by Bitwise as US XRP and Dogecoin ETFs prepare for their debuts.
The Securities and Exchange Commission (SEC) is currently evaluating a growing list of altcoin funds from asset managers eager to introduce smaller cryptocurrencies to the U.S. market. Among these applications are the proposed Exchange-Traded Funds (ETFs) for AVAX, the digital asset behind Avalanche, a blockchain network that rivals Ethereum in terms of speed and cost-effectiveness for application development.
Bitwise, a leading digital asset manager, has filed for an ETF to provide investors exposure to AVAX, the 19th-largest digital coin by market cap. The proposed ETF, named "Bitwise Avalanche ETF", would use Coinbase as the custodian. Bitwise announced this venture in June 2021.
VanEck and Grayscale have also joined the race, filing for AVAX ETFs with the SEC. However, as of now, the SEC has yet to approve any altcoin ETFs for listing on the U.S. market.
The approval of ETFs for Bitcoin and Ethereum last year marked a significant milestone. The Bitcoin ETFs, registered like commodity trusts under the Securities Act of 1933, have since managed combined assets worth nearly $152 billion. The Ethereum ETFs, which were approved later in 2021, operate under the Investment Company Act of 1940, similar to traditional mutual funds.
Unlike Bitcoin and Ethereum ETFs, the Rex-Osprey funds offering exposure to Dogecoin and XRP are registered via the Investment Company Act of 1940. These funds operate via a subsidiary registered in the Cayman Islands. ETFs providing exposure to XRP and Dogecoin are expected to list on the U.S. market this week, courtesy of REX Shares and Osprey Funds.
AVAX, currently trading over $30 per coin, has seen a 6% increase in the past 24 hours. The Avalanche network, which powers AVAX, offers a cheaper and faster blockchain for application development, making it a potential rival to Ethereum.
The successful debut of Bitcoin and Ethereum ETFs last year, after a decade of denials, set a precedent for the approval of altcoin ETFs. As the SEC continues to review the applications, investors eagerly await the potential listing of the Bitwise Avalanche ETF and other altcoin ETFs on the U.S. market.
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