Nasdaq Moves to List Avalanche ETF as Altcoin Demand Grows

Nasdaq Seeks to List Avalanche ETF

Nasdaq has provided a rule change with the SEC. If approved, this will allow the exchange to list shares of an ETF that tracks the spot price of Avalanche. This move follows VanEck’s application for an Avalanche ETF submitted a month ago. It also comes shortly after Nasdaq filed another request to list a Grayscale Avalanche fund. These back-to-back filings show increasing interest from major institutions in Avalanche-related products.

Asset managers are expanding beyond Bitcoin and Ethereum. They are now trying to offer ETFs linked to other cryptos. After the launch of spot Bitcoin and Ethereum ETFs, which brought in over $35 billion in net inflows, demand for new products is rising. Avalanche is one of the latest projects getting this attention. Others like Solana, XRP, Litecoin, and Sui are also being considered. These moves show the market’s shift toward more diversified crypto exposure.

Source: X

21Shares Joins the Race with Dogecoin ETF

This week, 21Shares submitted an application for a Dogecoin ETF. They join Grayscale and Bitwise, who are also exploring ETFs for the meme coin. This trend reflects growing interest in altcoins, even those that started as jokes. Asset managers are clearly responding to retail demand. They also seem to be testing how far the SEC is willing to go with crypto ETFs.

Bloomberg ETF Analyst James Seyffart shared his view on the ongoing filings. He expects both Avalanche and Dogecoin ETFs to eventually get approved. He said AVAX might get the green light by the end of December. Dogecoin, he predicts, could be approved around mid-October. These estimates are based on recent signals from regulators. However, the final decision depends on where the SEC draws the line. There’s still no clear rule about which cryptos can be included in ETFs.

AVAX, Avalanche’s native token, is currently trading at about $18.30. That’s a 1.6% drop in the past 24 hours, based on CoinGecko data. AVAX remains far below its all-time high of nearly $145 in 2021. Even with the price dip, investor interest seems to be growing. The token is now the 16th-largest crypto by market cap. ETF approval could bring more liquidity and visibility to the project.

Source: CoinGecko

Earlier this month, Standard Chartered initiated coverage of Avalanche. The bank believes AVAX could climb to $250 by 2030. That’s a potential 1,300% increase from current levels. The bank's Global Head of Digital Assets Research, Geoff Kendrick, emphasized Avalanche's distinctive scaling strategy. The platform uses dedicated layer-1 networks, which were previously called subnets. This approach could help Avalanche handle more traffic as adoption grows.

According to Kendrick, Avalanche’s relatively small market cap works in its favor. He thinks small improvements in its network can lead to big price changes. This gives AVAX more room to grow than larger tokens like Bitcoin or Ethereum. If this outlook proves accurate, AVAX could see greater price gains in the coming years. The ETF approval could act as a key trigger for wider adoption.

Final Thoughts

The push to launch altcoin ETFs is gaining momentum. Nasdaq’s latest filing for an Avalanche ETF adds to a long list of applications. It reflects strong interest from asset managers looking to meet investor demand. The SEC has yet to make final decisions on many of these applications. But analysts are hopeful. As regulations become clearer, more altcoin-based ETFs could become available. This shift could open up new opportunities in the crypto space.