ETF issuance institution VanEck submitted an Avalanche ETF application to the SEC

ETF issuer VanEck has submitted a registration statement for the Avalanche ETF to the US Securities and Exchange Commission (SEC) (S1). Upon approval, investors can directly purchase Avalanche ETF and own AVAX shares. According to the filing, the VanEck Avalanche ETF is defined as a trust and is an ordinary stock of an exchange issuance. The valuation of the VanEck Avalanche ETF will be based on the MarketVector Avalanche Benchmark interest rate, which aggregates pricing data from five major trading platforms. This application follows VanEck's recent registration of the Avalanche ETF in Delaware, USA, indicating the company's intention to expand its encryption investment product lineup. VanEck has not yet disclosed the ticker symbol for this ETF.

The U.S. Securities and Exchange Commission's acceptance of the filing does not mean it will definitely be approved, and the review will take some time. Bloomberg analysts James Seyffart and Eric Balchunas are optimistic about the high likelihood of approval this year. After the approval of Bitcoin ETF and Ethereum ETF, the market is looking forward to ETFs for other digital assets. Asset management companies are pushing for Altcoin ETFs beyond Bitcoin and Ethereum. James Seyffart posted the S-1 registration statement for Avalanche ETF on X and received enthusiastic responses. After the news came out, AVAX once broke through 19 USD and is now at 18.44 USD.

How does Avalanche work?

Avalanche's ecosystem consists of three separate blockchains. The top layer is Avalanche's main network, which is the overall structure responsible for verification in the ecosystem. The main network branches out into three separate blockchains: the Exchange Chain (X-Chain), the Platform Chain (P-Chain), and the Contract Chain (C-Chain).

The C-Chain blockchain with smart contract functionality is compatible with the Ethereum Virtual Machine (EVM) (. On C-Chain, developers can set up and run Ethereum-based DApps, NFTs, and ERC-20 tokens.

Avalanche's P-Chain is where developers can build their own blockchains. The X-Chain facilitates asset creation and transactions within the Avalanche blockchain ecosystem. These assets can be designed to carry certain key characteristics and functions.

The Avalanche ecosystem relies on subnets for blockchain validation. A subnet is a node group that determines the blockchain consensus in the Avalanche ecosystem (with validators within the subnet )). The blockchain of the Avalanche ecosystem is validated by subnets consisting of multiple nodes. Each blockchain is validated by only one subnet, but a subnet can validate multiple blockchains, and a node can be part of multiple subnets.

The C-Chain and P-Chain are governed by Snowman's consensus mechanism, using a Proof-of-Stake (PoS) mechanism. The X-Chain operates based on the Avalanche consensus protocol, with Snowman included as part of the Directed Acyclic Graph (DAG) structure configuration. Avalanche ecosystem nodes must stake 2,000 or more AVAX and operate as nodes in both the main network and subnetworks.

Avalanche has a total market value of 77 billion US dollars. Known for its high throughput and Ethereum EVM compatibility. Avalanche's financial innovation application in Franklin Templeton’s Tokenized Fund may help its approval. The application of VanEck's Avalanche ETF reflects market demand. The approval by the SEC will have a significant impact on the future development of Avalanche ETFs.

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