In brief
- Bitwise has filed to debut an ETF giving investors exposure to AVAX, the 19th-biggest digital coin by market cap.
- The S-1 filing comes as Dogecoin and XRP ETFs are expected to hit the market this week.
- Asset managers are hoping to get the green light for a number of altcoin ETFs.
Crypto asset manager Bitwise has filed the paperwork to debut an Avalanche exchange-traded fund just as new altcoin investment vehicles are expected to hit the U.S. market.
A Monday S-1 filing with the Securities and Exchange Commission shows that the “Bitwise Avalanche ETF” would use America’s biggest exchange, Coinbase, to custody the digital assets.
Avalanche is the crypto network behind AVAX, the 19th-largest digital asset by market cap. Avalanche rivals Ethereum by offering a cheaper and faster blockchain that developers can use to build applications upon.
AVAX was recently trading for over $30 per coin after rising by more than 6% over a 24-hour period, CoinGecko data shows. VanEck and Grayscale have also filed with the SEC to launch AVAX ETFs.
Bitwise’s filing comes as other altcoin ETFs are nearing their U.S. market debut. ETFs giving investors exposure to XRP and Dogecoin are expected to list this week, courtesy of REX Shares and Osprey Funds.
Unlike the Bitcoin and Ethereum ETFs that hit the market last year in the U.S., or the fund Bitwise wants to debut, these altcoin ETFs will offer investors exposure to Dogecoin and XRP via a subsidiary registered in the Cayman Islands that is wholly owned and controlled by the fund.
The Rex-Osprey funds were registered via the Investment Company Act of 1940, unlike the current crop of Bitcoin and Ethereum ETFs, which were registered like commodity trusts under the Securities Act of 1933.
The Bitcoin and Ethereum ETFs give investors exposure to the two largest digital coins by market cap via the fund managers who hold the cryptocurrencies.
The SEC last year approved Bitcoin ETFs after a decade of denials. The funds had the most successful debut in the history of ETFs. The 12 funds now manage combined assets worth nearly $152 billion, according to SoSoValue data.
Later in 2024, it gave the green light to fund managers wanting to release Ethereum ETFs.
Now, the regulator has a long list of altcoin funds to approve from asset managers wanting to debut smaller cryptocurrencies.
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