Key takeaways
- AVAX is up by less than 1% and is trading below $12.
- VanEck launched the first Avalanche ETF in the United States.
VanEck’s AVAX ETF goes live
The first exchange-traded fund to track the Avalanche’s native token, AVAX, and include staking rewards, launched on the NASDAQ stock exchange.
VanEck’s Avalanche ETF debuted on Monday and is trading under the ticker symbol VAVX. According to the investment management firm, VAVX is the first and currently the only U.S.-listed ETP focused on providing investors with exposure to the price return and potential staking rewards of Avalanche’s native token, AVAX.
Avalanche is one of the leading blockchains in the crypto space. It is an EVM-compatible blockchain launched by Ava Labs in 2020 with the primary goal of improving existing crypto scalability, interoperability, and usability.
As a smart contract blockchain, Avalanche can execute contracts automatically when certain conditions are met.
VanEck Director of Digital Assets Kyle DaCruz pointed out that Avalanche is a unique blockchain because it can link traditional finance and blockchain.
“Avalanche’s architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy, focusing on verifiable, real-world utility,” DaCruz added.
AVAX fails to rally
The AVAX/USD 4H chart remains bearish as AVAX fails to rally despite the launch of the VAVX ETF. At press time, AVAX is trading at $11.75.
The momentum indicators remain bearish, suggesting that the bears remain in control. The RSI of 40 is below the neutral 50, while the MACD lines below the neutral region add further bearish confluence to the pair.
If the bearish trend continues, AVAX could retest Sunday’s low of $11.24 over the next few hours or days. An extended bearish performance could see AVAX drop below the $10 psychological level.
However, if the market recovers, AVAX could hit the first major resistance level at $12.5 in the near term.