Bitwise has officially lodged its application with regulators, adding its name to a growing list of asset managers hoping to secure approval for an AVAX-backed product.
Unlike futures-based offerings, Bitwise’s proposal is built around direct token ownership. The fund would hold Avalanche itself, giving shareholders exposure to the asset’s market performance without the need to manage crypto wallets or safeguard private keys. Units will be issued in large blocks, known as baskets, that can be settled either in cash or in AVAX.
Custody of the digital assets will be handled by Coinbase Custody Trust Company. The firm, supervised under New York banking laws, has committed to storing the tokens in segregated accounts with cold-storage protection. The ETF’s valuation will follow the CME CF Avalanche–Dollar Reference Rate, a benchmark calculated and published daily by CF Benchmarks.
Avalanche’s blockchain has attracted attention for its proof-of-stake consensus, customizable subnets, and scalable smart contract capabilities. Supporters argue that these features give AVAX a competitive edge among layer-1 platforms, while skeptics highlight the volatility still facing the token.
At the time of writing, Avalanche trades at around $29.83, according to TradingView, reflecting a modest 24-hour rise but still far below its record highs. For investors, that gap illustrates both the opportunity and the risk such an ETF would carry into traditional financial markets.
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