Key Insights:
- VanEck has launched the first US Spot Avalanche ETF under the ticker VAVX on NASDAQ.
- The Avalanche network saw a massive 1,733% surge in active addresses recently after growing from 30,000 to over 600,000 users in just one week.
- Institutional adoption is speeding up, with California digitizing 42 million car titles and New Jersey tokenizing $240 billion in property deeds.
The crypto market recorded yet another major milestone this week as the VanEck Avalanche ETF (VAVX) officially began trading.
This launch provides a regulated way for investors to gain exposure to the AVAX token without worrying about managing private keys or crypto exchanges.
Avalanche ETF (VAVX) Leads the Market Charge
The arrival of the Avalanche ETF is a major boost for VanEck in terms of first-mover advantage. While other firms like Grayscale and Bitwise still have applications pending, VanEck has moved quickly to capture the market.
Additionally, to attract early investors, the firm announced a fee waiver on the first $500 million in assets. This Avalanche ETF fee waiver lasts until February 28, and after that, the fund plans to charge a competitive 0.20% sponsor fee.
Kyle DaCruz, the Director of Digital Assets Product at VanEck, noted that this vehicle offers transparency above all else.
It allows wealth managers and advisors to add AVAX to their portfolios easily, and one unique feature of this fund is its ability to stake a portion of its holdings.
By so doing, investors can earn rewards from simply holding their assets.
AVAX and Real World Adoption
The Avalanche ETF launch comes at a time when the network itself is busier than ever. Avalanche has come a long way from being a playground for experimental finance.
Today, it has now become the foundation for government and large entities. For instance, the California Department of Motor Vehicles is currently tokenizing 42 million vehicle titles on the network.
This move was put in place to prevent fraud and turn a two-week paper process into a transaction that takes minutes.
New Jersey is doing the same thing in Bergen County, where officials are working to put $240 billion worth of property deeds on the blockchain.
These government agencies are doing so on Avalanche (AVAX) to keep their data secure while benefiting from the speed of a public network.
Even gaming giants are moving in with popular titles like Off the Grid and MapleStory, now running on their own dedicated Avalanche chains.
What’s Next for Avalanche (AVAX) Price?
While the VAVX ETF has been great for Avalanche on the fundamental side, the technical aspect shows that AVAX has faced some roadblocks lately.
The AVAX price currently trades around $11.76, and this is a long way from its all-time high of nearly $145 seen in late 2021. However, on-chain data shows that people are using the network more than ever.
Active addresses recently jumped by over 1,700%, which indicates that while the price is low, the actual use cases of the network are hitting new highs.
Chart analysts are eyeing a “make or break” moment for the asset because the $12 level acts as a psychological floor. If the price can stay above $11 and break past the $14.80 resistance, it could quickly climb toward $18 or $20.
On the flip side, if it fails to hold current support, the asset might drop further and retest the $9 zone.