Key Points
- AVAX has increased by less than 1% and is trading below $12.
- VanEck has launched the first Avalanche ETF in the United States.
VanEck Launches AVAX ETF
The first exchange-traded fund tracking Avalanche’s native token, AVAX, which includes staking rewards, has been launched on the NASDAQ.
VanEck’s Avalanche ETF debuted on Monday under the ticker symbol VAVX. According to the investment management firm, VAVX is the first and currently the only exchange-traded product (ETP) in the U.S. that provides investors with exposure to the price performance and potential staking rewards of the native Avalanche token, AVAX.
Avalanche is one of the leading blockchains in the cryptocurrency sector. It is an EVM-compatible blockchain launched by Ava Labs in 2020, primarily aimed at enhancing scalability, interoperability, and usability within the crypto landscape.
As a smart contract blockchain, Avalanche can automatically execute contracts when specific conditions are met.
Kyle DaCruz, VanEck’s Director of Digital Assets, emphasized that Avalanche is a unique blockchain as it can bridge traditional finance and blockchain technology.
“Avalanche’s architecture is ideally positioned to bridge the gap between traditional finance and the on-chain economy, focusing on verifiable and tangible utility,” DaCruz added.
AVAX Struggles to Rally
The AVAX/USD 4-hour chart remains bearish, as AVAX has not managed to rally despite the launch of the VAVX ETF. At the time of publication, AVAX is trading at $11.75.
Momentum indicators remain bearish, suggesting that sellers are still in control. The RSI of 40 is below the neutral 50, while MACD lines are also below the neutral zone, adding further bearish confluence to the pair.
If the bearish trend continues, AVAX could retest Sunday’s low of $11.24 in the coming hours or days. Prolonged bearish performance could drive AVAX below the psychological level of $10.
However, if the market rebounds, AVAX might reach the first major resistance level at $12.50 in the short term.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
