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- Bitwise plans ETF for Avalanche, offering easier crypto access.
- Grayscale, VanEck join competition for Avalanche investment products.
- Coinbase to act as custodian for Bitwise’s Avalanche ETF.
Crypto asset manager Bitwise is planning to launch an exchange-traded fund (ETF) that will track Avalanche (AVAX), the token for the Avalanche blockchain. With the support of the U.S. Securities and Exchange Commission (SEC), this product will allow investors to acquire AVAX with ease without having to purchase or hold the token itself. It is a major step in opening crypto assets to traditional investors.
The suggested ETF will not use derivatives but will directly hold AVAX tokens. Its net asset value (NAV) will be pegged on the CME CF Avalanche-Dollar Reference Rate, which follows the market price of AVAX. Coinbase has been chosen as the custodian, a trusted site that can securely store the tokens.
Bitwise intends to assist investors in executing asset allocation plans in the most efficient way using the ETF. It is accessible to the cryptocurrency market because it eliminates the complications of purchasing and holding AVAX directly. The product will serve institutional and retail buyers who desire to be exposed to Avalanche but do not have the burden of managing the digital assets themselves.
Also Read: Bill Morgan Shifts Focus: Why It’s Hard to Stay Angry at Coinbase Over XRP Delisting
Avalanche ETFs Spark Growing Competition in the Market
Investment products that use AVAX are becoming extremely popular. Grayscale already submitted applications to make its Avalanche Trust a spot AVAX ETF. VanEck is following a similar path using an AVAX fund. This growing competition evidences the growing institutional adoption of the Avalanche blockchain.
Avalanche has been shown to attract the attention of major financial companies, such as Apollo and BlackRock, regarding tokenized financial products. The Avalanche Foundation is also striving to raise $1 billion to create AVAX treasury companies in the United States. Such attempts should increase the token’s sales and reinforce the market base.
The ETF introduced by Bitwise is a significant step for Avalanche to have an easier-to-access investment product. As the competition grows Cutthroat in the crypto space, Avalanche’s future is bright.
Also Read: Pakistan Opens Doors to Crypto Giants, Unveils Sharia-Compliant Regulations!
