Bitwise is actively preparing to launch the first spot Exchange Traded Fund (ETF) based on the Avalanche (AVAX) cryptocurrency in the United States. Recent filings with the Securities and Exchange Commission (SEC) have disclosed crucial details regarding the ETF's trading symbol, management fees, and operational structure.
The proposed ETF will be listed on the NYSE Arca under the ticker symbol BAVA. A key feature of the offering is that no management fees will be charged for the initial month of trading, a strategy designed to attract early investors.
Avalanche ETF Nears Approval
Bitwise, a prominent asset manager overseeing $15 billion in assets, has submitted an amended S-1 form to the SEC for its Avalanche spot ETF. Should the ETF receive approval, it will provide investors with a regulated avenue to gain direct exposure to the price movements and staking yields of AVAX. The ETF's management fee is set at 0.34% annually. This fee will be waived for the first month after launch or until the ETF's assets under management reach $500 million, a promotional strategy consistent with Bitwise's other altcoin ETFs.
Despite the submission of new SEC guidance, the application for the BAVA ticker still carries a "delaying amendment" status. This indicates that ongoing revisions are being made, though it also suggests that the ETF's technical and logistical preparations are nearing completion, leaving the exact approval timeline uncertain.
The operational responsibilities for the ETF have been clearly defined. Coinbase Custody Trust Company will serve as the custodian for the AVAX assets held by the ETF. Concurrently, BNY Mellon will be responsible for safeguarding the ETF's cash assets. The initial seeding of the ETF is planned to involve Bitwise Investment Manager purchasing 100,000 shares, representing an initial investment of $2.5 million.
AVAX's Response to ETF News
The ongoing progress and positive developments surrounding Bitwise's Avalanche ETF application have had a notable impact on AVAX's market performance. In the past 24 hours, the altcoin's price has surged by over 7%, reaching $14.94. Looking at weekly performance, AVAX has climbed an impressive 17%, with its price fluctuating between $13.93 and $14.99. An accompanying 15% increase in trading volume further signals a resurgence of investor interest in the cryptocurrency.
From a technical analysis perspective, AVAX is currently trading below its 50-day moving average, which stands at $18.04. Achieving sustained upward momentum will likely require the cryptocurrency to recapture this key technical level. Data from CoinGlass presents a mixed outlook in the derivatives market. Total open interest for AVAX has decreased to $612 million, although there has been a 6% increase in open positions on major exchanges like Binance and OKX.
The anticipated approval of the Avalanche ETF is expected to attract increased institutional investment and further solidify staking yields as a fundamental component of AVAX's market valuation. The recent successful launches of XRP and Dogecoin ETFs by Bitwise have contributed to a growing sense of optimism regarding the potential approval process for the Avalanche ETF.