Avalanche ETF Lands in the U.S. with VanEck’s VAVX Launch

VanEck has launched the first U.S.-listed spot Avalanche exchange-traded fund, giving investors direct exposure to $AVAX price performance and potential staking rewards. The VanEck Avalanche ETF (VAVX) started trading on January 26, 2026, with a temporary fee waiver on the first $500 million in assets under management or until February 28, 2026.

VAVX allows investors to gain exposure to Avalanche's native token through a traditional exchange-traded product structure, eliminating the need to directly purchase and store $AVAX tokens.

What Are The Key Features Of VAVX?

The fund provides spot exposure to $AVAX, the native cryptocurrency of the Avalanche blockchain. VanEck has waived all sponsor fees for the first $500 million in assets or until February 28, 2026, whichever comes first. After the waiver period ends, the sponsor fee will be 0.20%. Brokerage fees and commissions may still apply depending on the investor's broker.

“We’re excited to launch VAVX to provide investors with a transparent, exchange-traded vehicle to access a network that we believe will drive the next phase of institutional blockchain adoption,” Kyle DaCruz, Director of Digital Assets Product, said.

The ETF structure offers investors regulated exposure without the technical requirements of wallet management or private key security. However, VAVX is not registered under the Investment Company Act of 1940, meaning it lacks the same protections as traditional mutual funds or registered ETFs.

How Does Avalanche's Technology Support Institutional Use?

Avalanche operates as a high-performance blockchain platform built for scalability. The network uses a unique consensus protocol that delivers near-instant transaction finality while enabling the creation of interoperable Layer 1 blockchains across public and private networks.

This architecture has attracted major institutions to build dedicated blockchains on Avalanche. Citi, FIFA, and Gunzilla Games have each launched their own blockchains on the network, leveraging its customizable infrastructure for specific use cases.

Recent Network Upgrades

The Granite upgrade went live on Avalanche's Fuji testnet in October 2025, introducing three Avalanche Consensus Proposals that improve network functionality:

• ACP 181 enables stable cross-chain messaging, reducing failed transactions between different blockchains
• ACP 204 adds secp256r1 cryptographic support, expanding authentication options for enterprise users
• ACP 226 allows dynamic minimum block times, lowering transaction delays

These technical improvements address specific pain points in cross-chain operations and enterprise integration.

What Institutional Deployments Has Avalanche Seen?

Avalanche has secured multiple institutional partnerships throughout 2025, demonstrating practical applications beyond speculative trading.

Digital Liquidity Gateway For U.S. Banks

FIS and Intain Markets launched a blockchain-based marketplace on Avalanche that allows community banks to trade loan portfolios onchain. The system tokenizes loans as NFTs and settles transactions using stablecoins like USDC while integrating with existing FIS banking systems. Approximately 2,000 U.S. banks can access this institutional-grade liquidity platform.

European Regulated Trading System

In November 2025, Securitize announced a pan-European Trading and Settlement System on Avalanche under the EU DLT Pilot Regime. The platform combines trading and settlement into one regulated environment, enabling tokenized securities to settle in seconds across all EU member states.

Avalanche was selected for this system due to its sub-second finality, predictable throughput, and custom subnet compliance controls. The first issuance under this framework is expected in 2026.

Cross-Border Payment Testing

Thailand's Kasikornbank partnered with StraitsX and Avalanche to test real-time payments between Thailand and Singapore. The project allows Thai tourists to pay in Singapore using Q Wallet, with funds converted into XSGD stablecoin and settled instantly through Avalanche's permissioned chains.

What Does Network Activity Show?

According to DeFiLlama data, total value locked on Avalanche has grown significantly in 2025, currently sitting around 118.39 million $AVAX. Since the approval of the Genius Act in the United States, stablecoin supply on the Avalanche network has surged to over $1.65 billion in USDT.

Is There Competition In The Avalanche ETF Market?

In November 2025, Bitwise filed an amended S-1 for a spot $AVAX ETF with staking capabilities, planning to launch on NYSE Arca in early 2026. The Bitwise product includes a 0.34% management fee with a one-month fee waiver on the first $500 million in assets. Coinbase Custody will serve as the custodian, and the fund will not use leverage or derivatives.

Conclusion

The VanEck Avalanche ETF launch provides U.S. investors with regulated access to $AVAX through a traditional investment vehicle. With its fee waiver structure, institutional partnerships spanning banking and securities, and recent network upgrades improving cross-chain functionality, VAVX enters the market as Avalanche demonstrates active deployment in regulated financial infrastructure. The ETF offers exposure to a blockchain platform that has moved beyond concept to operational use in loan trading, securities settlement, and cross-border payments.

Resources

1. Press release by VanEcK: VanEck Introduces Another First with Launch of the VanEck Avalanche ETF (VAVX)

2. Avalanche on X: Announcements in 2025

3. Avalanche blog: Updates in 2025

4. Press release by Bitget: Global Web3 Giants Bitget and Avalanche Join Forces to Boost Web3 Ecosystem in India

5. Report by Financial Times: Avalanche blockchain aims to raise $1bn for crypto-hoarding companies

6. Avalanche Granite upgrade blog: About Granite upgrade

7. Press release by Securitize: Securitize Wins Full EU Regulatory Approval and Selects Avalanche for Initial Deployment of European Trading & Settlement System

8. Avalanche DeFiLlama portal: Avalanche analytics