tl;dr
Bitwise files for an Avalanche (AVAX) ETF, joining VanEck and Grayscale in seeking SEC approval for altcoin ETFs. The "Bitwise Avalanche ETF" would custody AVAX via Coinbase, with AVAX surging past $30. XRP and Dogecoin ETFs, using Cayman Islands subsidiaries, are set to debut. Unlike Bitcoin and Et...
**Bitwise Files for Avalanche ETF as Altcoin ETFs Surge in U.S. Market**
The crypto world is buzzing with fresh momentum as Bitwise, a leading crypto asset manager, files paperwork to launch an Avalanche (AVAX) exchange-traded fund (ETF). This move comes as a wave of altcoin ETFs prepares to hit U.S. markets, signaling a shift in how investors access digital assets beyond Bitcoin and Ethereum.
The “Bitwise Avalanche ETF” would leverage Coinbase, America’s largest exchange, to custody AVAX, the 19th-largest cryptocurrency by market cap. Avalanche, the blockchain network behind AVAX, has positioned itself as a rival to Ethereum by offering faster, cheaper transactions for developers. AVAX recently surged past $30 per coin, climbing over 6% in 24 hours—a testament to growing interest in the asset.
But Bitwise isn’t alone. VanEck and Grayscale have also filed SEC applications for AVAX ETFs, reflecting a broader push to diversify crypto exposure. Meanwhile, ETFs for XRP and Dogecoin are set to debut this week via REX Shares and Osprey Funds. These funds, however, take a unique approach: they’ll use subsidiaries registered in the Cayman Islands, a structure distinct from the Bitcoin and Ethereum ETFs that dominated the U.S. market last year.
The regulatory framework for these altcoin ETFs differs from their predecessors. While Bitcoin and Ethereum ETFs were registered as commodity trusts under the Securities Act of 1933, the new funds are structured under the Investment Company Act of 1940. This distinction matters. It means investors in XRP and Dogecoin ETFs will gain exposure through subsidiaries controlled by the funds, rather than directly holding the assets.
The SEC’s approval of Bitcoin ETFs in 2023 marked a watershed moment, with 12 funds amassing $152 billion in assets within months. Ethereum ETFs followed in 2024, further cementing crypto’s legitimacy. Now, the regulator faces a crowded pipeline of altcoin applications, from AVAX to XRP and beyond.
What does this mean for investors? For starters, it’s a sign that the market is evolving. Altcoins, once seen as niche, are now mainstream. But the structural differences—like the Cayman Islands subsidiaries—raise questions about transparency and control.
As these ETFs hit the market, one thing is clear: the crypto landscape is no longer just about Bitcoin. With Avalanche, XRP, and Dogecoin joining the ETF fold, the playing field is expanding. Will this usher in a new era of diversified crypto investing, or will regulatory hurdles slow the momentum? The answer may shape the future of digital assets for years to come.
What’s your take? Are altcoin ETFs a game-changer, or just a flash in the pan?