Nasdaq's Proposal to List VanEck's Avalanche ETF: A New Chapter in Crypto Investment

Key Takeaways

Nasdaq has submitted a request to the SEC to allow listing of VanEck's Avalanche ETF, expanding beyond Bitcoin and Ethereum ETFs
The move reflects growing investor demand for altcoin exposure in regulated investment vehicles
Regulatory environment for cryptocurrencies has become more favorable under the current US administration
Analysts project AVAX could reach $250 by the end of the decade, a potential 1,300% increase from current values
Success of Bitcoin and Ethereum ETFs, with over $35 billion in net inflows, has paved the way for this altcoin expansion

Nasdaq formally requested SEC approval to list VanEck's Avalanche ETF on April 11, 2025
This follows VanEck's own filing for an Avalanche ETF a month earlier
Nasdaq also recently filed to list Grayscale's Avalanche ETF
These filings represent a significant expansion of financial products focused on altcoins
Fund issuers are responding to increasing investor demand for regulated exposure to a broader range of digital assets
Bitcoin and Ethereum spot ETFs introduced in 2024 have attracted over $35 billion in net inflows
- This success has strengthened interest in other blockchain projects
- Target cryptocurrencies include Solana, Ripple (XRP), Litecoin, Sui, and Avalanche

Current US administration has created a more supportive climate for cryptocurrency investments
Multiple fund managers are exploring new cryptocurrency ETF opportunities
On the same day as Nasdaq's filing for the Avalanche ETF:
- 21Shares submitted a proposal to launch a Dogecoin ETF
- This joins previous Dogecoin ETF filings from Grayscale and Bitwise
According to Bloomberg ETF analyst James Seyffart:
- Both Avalanche and Dogecoin ETFs have good chances of receiving SEC approval
- A potential approval for AVAX ETF is expected by the end of December 2025
- Dogecoin ETF approval could come by mid-October 2025
The critical factor will be the SEC's criteria for classifying cryptocurrencies eligible for ETF inclusion
- Seyffart notes: "We are waiting to see where the SEC will draw the line"

AVAX currently ranks as the sixteenth largest cryptocurrency by market capitalization
Trading price was approximately $18.30 as of the report date
- This represented a 1.6% decrease in the previous 24 hours
- Current price is down over 87% from its all-time high of around $145 recorded in late 2021
Standard Chartered Bank began covering Avalanche in early April 2025
- The bank projects AVAX could reach $250 by 2030
- This represents a potential 1,300% increase from current values
Avalanche's technical architecture is noted for its distinctive features:
- Uses dedicated L1 application networks (previously known as "subnets")
- According to Geoff Kendrick, head of digital asset research at Standard Chartered:
  - Avalanche's relatively low market capitalization is actually a competitive advantage
  - Technological improvements can produce significant price impacts
  - AVAX is expected to "outperform both Bitcoin and Ethereum in terms of relative price appreciation"

Demand for investment instruments linked to emerging digital assets continues to strengthen
Financial institutions are responding with increasing speed to meet this demand
If SEC approvals materialize as expected:
- A second wave of crypto ETFs focused on altcoins could emerge
- These would emphasize technological innovation and scalability advantages
The potential listing of VanEck's Avalanche ETF on Nasdaq would:
- Represent a significant milestone in cryptocurrency adoption
- Offer regulated access to Avalanche for both institutional and retail investors
- Potentially open doors for further integration between traditional finance and cryptocurrencies
While Bitcoin and Ethereum remain dominant, Avalanche is positioned to gain prominence
- Support from banks, funds, and exchanges could accelerate adoption
- 2025 may prove transformative for the relationship between traditional finance and cryptocurrencies