Bitwise presents application for ETF Avalanche to the SEC

The entity consigned to the American Securities Regulator the form S-1 corresponding, indicating that it will work with coinbase as custodian, and that the product will be a mechanism for companies and investors to have exposure to the ecosystem of Avalanche

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• Bitwise presented to the Sec request for an ETF based on Avax of Avalanche spot.
• The background would maintain Avax directly and use the reference rate CME CF Avalanche – Dollar.
• Coinbase It would act as custodian of the assets.
• Competitors like Grayscale and Vaneck They also prepare similar products.

Bitwise, The Cryptocurrency Specialized Asset Company submitted a request before the United States Stock Exchange and Securities Commission (SEC) to launch a quoted background (ETF) that follows the performance of Avax, The native token of Avalanche

Bitwise goes for an ETF Avax spot

The document presented before the Sec It was the form S-1where it emphasizes that “The fund offers investors the opportunity to access the Avalanche market through a traditional brokerage without the possible entry barriers or risks associated with acquiring and maintaining AVAX directly”.

Regarding ETFBitwise states that the design of the trust would allow certain investors to implement more effective assets allocation strategies using fund actions instead of operating with Avax directly. Indicates that Coinbase will operate as a custodian of assets, and that the idea is to facilitate companies and/or investors access to the ecosystem of Avalanche safely and regulated.

The presentation before the Sec details that the fund will establish its net asset value (NAV) CME CF Avalanche – Doll Reference Rate. In addition, the ETF would maintain Avax Physically and would not use derivatives, a relevant characteristic for those who seek direct exposure to the asset. The Christmas represents the total value of the least passive assets divided by the shares in circulation, showing the price per share of the fund.

Bitwise It already offers other cryptocurrency investment products, such as index and ETFs funds linked to Bitcoin and Ethereum. The company recorded this month a Avalanche Trust in Delaware, A step prior to this new product. In parallel, its competition also moves: Grayscale submitted a request to convert your Avalanche Trust In an ETF Avax al counted, while Vaneck Prepare your own background linked to Token.

Strong interest in Avalanche

The news is part of a context of growing interest in cryptocurrency -based financial products. The Avalanche Foundation announced last week that seeks to raise USD $ 1 billion to establish two treasury in the United States that would buy AVEX tokens of the discount foundation. These digital treasures represent another alternative route for investors to access crypto markets from traditional accounts, similar to the ETF approach.

Avalanche, developed by Av Labs In 2020, it has positioned itself as a high performance and scalability blockchain designed for decentralized applications and tokenized products. In recent months it has attracted the interest of great financial actors: Apollo and Blackrock have tried tokenized funds on this network, while Skybridge, The Anthony Scaramucci coverage fund, evaluated Tokenizar USD $ 300 million in assets using said blockchain.

In this scenario, the strategy of Bitwise It aims to consolidate its presence in a sector where institutional demand grows. The possibility of operating through regulated ETFs can reduce friction for traditional investors and give greater legitimacy to the ecosystem Avalanche, a factor that could strengthen the adoption of your native token Avax, that at the time of the news is quoted in USD $ 29.9 with a slight rise of more than 1% in the day according to market data

Competition between asset managers to lead the supply of ETFs linked to cryptocurrency is not limited to Avalanche Bitwise has also submitted requests for funds that track Chainlink and XRP, thus expanding its product portfolio to capture investors interested in specific digital assets. This dynamism reflects a maturation process in the crypto market, with new opportunities to combine technological innovation and traditional financial vehicles.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, Created with artificial intelligence, for free use, licensed under public domain.

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