"First Avalanche ETF of the USA Marks a New Era in Crypto Investments"

First Avalanche ETF in the US Launched for Investors

In the US, the first-ever spot Avalanche (AVAX) exchange-traded fund (ETF) has started trading. The VAVX fund, developed by global asset manager VanEck, provides investors with access to the performance of spot AVAX tokens and staking rewards, while also expanding the pool of crypto ETFs for US investors.

Opportunities Provided by the Fund and Initial Reactions

Kyle DaCruz, Director of Digital Asset Products at VanEck, stated, We see Avalanche as a significant smart contract platform that supports the acceleration of the tokenization process alongside Ethereum and Solana. VAVX will not charge any fees until it reaches $500 million in assets or until February 28 (whichever comes first). After that, a 0.2% sponsorship fee will apply.

However, initial market movements indicate that investors are cautious about the AVAX fund. Data from SoSoValue shows that VAVX recorded a trading volume of approximately $333,970 on its first day, with net assets reaching $2.41 million. However, the fund did not secure a net inflow on its first trading day, indicating limited investor demand under current market conditions.

A Significant Step in the Long Run

Despite the weak market reaction to the ETF, some analysts argue that its long-term effects should not be overlooked. Crypto analyst Kaleo noted that the launch may not create a substantial impact under current market conditions, but it could serve as an important catalyst as more favorable market environments emerge in the future.

Morgan Krupetsky, Vice President of On-Chain Finance at Ava Labs, emphasized that The launch of VAVX is a meaningful step toward institutional access to the Avalanche network. He highlighted that this situation represents an important milestone for the broader adoption of Avalanche. VAVX positions AVAX among other popular crypto assets like XRP, Solana (SOL), and Dogecoin (DOGE). The spot ETFs for these assets received approval partly due to the SEC's endorsement of new general listing rules at the end of last year.

The information provided here does not constitute investment advice.