- Bitwise races to launch an Avalanche ETF while rivals Grayscale and VanEck also push for AVAX funds in a heated competition.
- Avalanche Foundation plans to raise $1B for treasury firms as Apollo and BlackRock explore onchain funds on the blockchain.
- The Avalanche ETF aims to simplify access for investors while boosting trust, transparency, and competition in crypto markets.
Bitwise is launching an exchange-traded fund that tracks Avalanche’s native token AVAX. The firm filed its application with the U.S. Securities and Exchange Commission on Monday, signaling urgency to capture investor demand.
The fund, if approved, would give traditional brokerage users direct access to Avalanche without handling tokens. This timing matters, as competing asset managers are also racing to create similar AVAX products.
The proposed ETF aims to solve one of crypto’s biggest hurdles: ease of access. Investors can buy shares through regular brokerage accounts. Hence, they avoid risks tied to acquiring and storing AVAX directly.
Bitwise emphasized in its filing that the trust design enables efficient strategies for both tactical and long-term asset allocation. Moreover, Coinbase will serve as custodian, securing the fund’s AVAX holdings.
Technical Structure and Market Impact
The ETF will calculate its net asset value using the CME CF Avalanche–Dollar Reference Rate. Besides, the fund will hold physical AVAX tokens and avoid derivatives, keeping exposure straightforward.
Net asset value reflects total assets minus liabilities, divided by outstanding shares. Consequently, this design provides transparency and a reliable valuation method for investors.
Bitwise already manages crypto products, including index funds and ETFs for Bitcoin and Ethereum. Additionally, it registered an Avalanche trust in Delaware earlier this month, a step toward this new filing.
However, competition is fierce. Grayscale is seeking to convert its Avalanche Trust into a spot ETF, while VanEck is pushing for an AVAX fund too.
Avalanche’s Expanding Ecosystem
Avalanche itself is attracting major attention. The Avalanche Foundation aims to raise $1 billion for two U.S.-based AVAX treasury firms. The plan includes launching a new company and converting an existing one.
These treasuries will purchase tokens at discounted prices, offering another entry channel for investors. Moreover, institutions like Apollo and BlackRock are trialing onchain funds with Avalanche, highlighting its growing institutional appeal.
Additionally, SkyBridge Capital has explored tokenizing $300 million in assets on Avalanche. Hence, the Layer 1 blockchain continues positioning itself as a hub for tokenized products. Launched in 2020 by Ava Labs, Avalanche offers speed and scalability for decentralized applications.
Bitwise’s Avalanche ETF push highlights how competition and institutional adoption are reshaping crypto markets. Access, trust, and timing now drive the race forward.
