Bitwise applies for Avalanche ETF! AVAX may welcome a new channel for Wall Street funds.

The cryptocurrency asset management company Bitwise has submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC), planning to launch a Spot ETF tracking Avalanche (AVAX). If approved, the product will provide investors with a new way to access the Avalanche market through traditional brokerage accounts.

Avalanche ETF application details

Bitwise states in the document that the trust aims to provide investors with market exposure without the need to directly purchase or hold AVAX, lowering the entry barrier and associated risks.

The net asset value (NAV) of the ETF will be calculated based on the CME CF Avalanche Index Fund USD reference rate, and the fund will directly hold AVAX tokens without using any derivatives. This means that investors can obtain pure spot price performance, rather than indirectly tracking through futures or swap contracts.

Bitwise's strategic layout

Bitwise was founded in 2017 and has launched multiple encryption investment products, including Bitcoin (BTC) and Ethereum (ETH) ETFs, as well as multi-asset encryption index funds. Earlier this month, the company registered an Avalanche trust in Delaware to pave the way for the ETF listing.

It is worth noting that competitor Grayscale is also advancing its plan to convert its Avalanche trust into a Spot ETF, while VanEck has similarly applied for an AVAX fund, indicating that Wall Street's interest in Avalanche is rapidly increasing.

Avalanche Ecosystem and Institutional Adoption

Avalanche, launched by Ava Labs in 2020, is a high-throughput, scalable Layer 1 blockchain designed for decentralized applications (dApps) and tokenized assets.

In recent years, financial giants like Apollo and BlackRock have chosen to use funds on the Avalanche test network, and SkyBridge Capital is also considering tokenizing $300 million worth of assets on the network. Last week, the Avalanche Foundation announced plans to raise $1 billion to establish two AVAX asset management companies and purchase tokens at a discount, further promoting ecological development.

AVAX Market Reaction and Outlook

As of September 16, the AVAX quote is $29.85, up over 1% for the day. Analysts believe that if Bitwise's ETF is approved, it will bring more institutional capital inflow to AVAX and may replicate the capital effects seen after the listing of Bitcoin and Ethereum ETFs.

For investors, the launch of the Avalanche ETF not only means a more convenient investment channel but could also become an important catalyst for pushing the AVAX price to break through.

Conclusion

Bitwise's Avalanche ETF application marks a crucial step for AVAX towards mainstream financial markets. With competitors like Grayscale and VanEck entering the fray, and institutional adoption of the Avalanche ecosystem accelerating, AVAX may be poised for a new surge of funding and attention.