Bitwise Files for Avalanche ETF, AVAX Surges Past $30

Bitwise Asset Management has formally filed with the Securities and Exchange Commission to launch an exchange-traded fund tracking Avalanche (AVAX), the 19th largest cryptocurrency by market capitalization. The announcement immediately propelled AVAX prices, with the token crossing the $30 threshold following a 6% daily gain. This market reaction underscores growing investor appetite for regulated exposure to alternative cryptocurrencies beyond the established giants of Bitcoin (BTC) and Ethereum (ETH).

The proposed ETF would custody assets with Coinbase, aligning with industry standards for security and regulatory compliance. This filing represents a significant milestone in the evolution of crypto investment products, as it expands the universe of available ETF options to include prominent altcoins. The move follows similar pending applications for XRP and Dogecoin (DOGE) funds from other providers like REX Shares and Osprey Funds, indicating a broader trend toward diversified crypto exposure through traditional investment vehicles.

A critical distinction in Bitwise’s filing lies in its regulatory approach. Unlike Bitcoin and Ethereum ETFs filed under the 1933 Securities Act, this application utilizes the 1940 Investment Company Act. This shift in regulatory framework could fundamentally alter how the funds are structured and operated on a day-to-day basis, potentially introducing different compliance requirements and operational standards.

The 1940 Act approach, also employed by REX Shares and Osprey Funds for their altcoin ETF proposals, typically involves creating funds through Cayman Islands subsidiaries. This structure may offer different investor protections and operational flexibility compared to the 1933 Act framework used for Bitcoin and Ethereum products. Investors and fund managers alike are closely monitoring how these regulatory differences might impact fund performance, fees, and overall market accessibility.

Avalanche operates as a blockchain platform that directly competes with Ethereum, offering developers cheaper and faster transaction capabilities. This technical advantage has positioned AVAX as a prominent alternative in the smart contract platform space, making it an attractive candidate for ETF inclusion. The platform’s growing ecosystem and developer adoption have contributed to its status as the 19th largest cryptocurrency by market value.

The timing of Bitwise’s filing builds upon the SEC’s previous cryptocurrency ETF approvals. Last year, the regulator greenlit Bitcoin ETFs, with the 12 approved funds now holding approximately $152 billion in assets. More recently, Ethereum ETF approvals opened the door for further altcoin expansion. This regulatory progression has created a pathway for alternative cryptocurrencies to gain mainstream investment access through regulated vehicles.

Bitwise’s Avalanche ETF filing signals accelerating institutional adoption of alternative cryptocurrencies and could pave the way for broader altcoin ETF approvals. The growing number of applications indicates that investment managers are betting on sustained investor interest in diversified crypto exposure beyond the two market leaders. This expansion reflects the maturation of the cryptocurrency market and its increasing integration with traditional finance.

As the SEC reviews these applications, the entire crypto industry watches closely. Approval of additional altcoin ETFs could significantly reshape the investment landscape, providing retail and institutional investors with easier access to a wider range of digital assets. The success of Bitcoin and Ethereum ETFs has demonstrated substantial demand for regulated crypto investment products, suggesting that similar vehicles for altcoins like AVAX, XRP, and DOGE could attract significant capital inflows if approved.