VanEck Stakes Early Claim on Avalanche ETF

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• AVALANCHE ETF REGISTRATION IS A VOTE OF CONFIDENCE FROM CAPITAL MARKETS
• AVALANCHE9000 LAUNCHES ON MAINNET
• BREAKTHROUGH IN DIVERSIFICATION OF APPLICATION SCENARIOS
• THE AMBITION BEHIND $250 MILLION FINANCING
• DISCLAIMER
• WRITER’S INTRO

CONTENT

On March 11, globally renowned asset management company VanEck announced the official registration of an Avalanche ETF in Delaware.

Following Bitcoin ETF and Ethereum ETF, traditional finance hooks and capital are accelerating their penetration into the Web3 space.

AVALANCHE ETF REGISTRATION IS A VOTE OF CONFIDENCE FROM CAPITAL MARKETS

VanEck’s Avalanche ETF registration news quickly attracted industry attention, undoubtedly providing a compliant channel for institutional investors to participate in the Avalanche ecosystem.

In my view, as an asset management giant with over $100 billion in managed assets, choosing to bet on Avalanche at this time is based on two key signals:

• Technical Maturity: Avalanche, with its unique consensus mechanism and subnet architecture, has achieved thousands of transactions per second (TPS) and sub-second transaction confirmation, performance far exceeding traditional public chains;

• Ecosystem Explosion Potential: From payments and gaming to AI, Avalanche’s multi-sector layout is forming a “on-chain super application cluster,” and its 2025 roadmap reveals ambitions to become a “Web3 infrastructure hub.”

Market analysts point out that the ETF launch may further enhance AVAX token liquidity and attract more developers and projects to join the ecosystem. AVAX’s current price is $17.25, with a daily trading volume of approximately $713M.

AVALANCHE9000 LAUNCHES ON MAINNET

The core driving force supporting the ETF’s establishment is Avalanche’s recent series of technological breakthroughs and ecosystem moves.

In December 2024, Avalanche completed its largest-ever mainnet upgrade “Avalanche9000,” with core achievements including:

• 99.9% reduction in subnet deployment costs: Through optimized validation mechanisms and dynamic fee models, the L1 chain creation threshold dropped from 2000 AVAX staking to nearly zero cost;

• 96% reduction in transaction fees: C-Chain base fee reduced from 25 nAVAX to 1 nAVAX, directly stimulating on-chain activity;

• Leap in cross-chain interoperability: Integration of inter-chain token transfer (ICTT) and inter-chain messaging (ICM) protocols, enabling seamless flow of multi-chain assets and data.

This upgrade is viewed as the starting point of “Subnet 2.0.” Existing subnets were renamed “Avalanche L1,” allowing developers to customize staking rules, gas tokens, and governance models, fully liberating application chain sovereignty. According to official data, over 500 L1 chains have entered the development stage since the upgrade, covering RWA, gaming, payments, and other tracks.

In Avalanche’s 2025 roadmap description, it proposes to increase global adoption and deeply integrate with AI. Avalanche further clarifies three major directions:

• Etna network upgrade: Enhancing node efficiency and cross-chain communication capabilities;

• Avalanche9000 global movement: Accelerating ecosystem building through developer incentive programs (such as the $40 million Retro9000 fund);

• Deep AI integration: Launching the $100 million infraBUIDL(AI) program, providing distributed GPU computing support in partnership with Aethir and others.

Notably, Avalanche Network 3.0 has achieved “sub-second transaction finality + dynamic subnet expansion,” and its technical framework is becoming a testing ground for AI and blockchain integration.

BREAKTHROUGH IN DIVERSIFICATION OF APPLICATION SCENARIOS

Beyond technical upgrades, Avalanche’s breakthroughs in consumer-level applications have won it a broader user base:

Avalanche Visa Card, Promoting Cryptocurrency Payment Adoption

In February 2025, the Avalanche Foundation partnered with Rain to launch a Visa credit card supporting AVAX, wAVAX, and stablecoins. Users can spend directly at over 80 million Visa merchants globally, connecting the “last mile” between on-chain assets and the real economy. This innovation not only enhances token utility but also provides a model for traditional financial institutions to access Web3 payment networks.

Rising Gaming Ecosystem, Natural Advantages of High-Performance Chains

With low gas fees and high throughput, Avalanche has become the platform of choice for Web3 game developers. Its dedicated portal GamingonAVAX.com has listed over 200 game projects, covering MMORPGs, NFT card games, and metaverse social interactions. Analysts believe the combination of gaming and DeFi will catalyze the scaled implementation of “play-to-earn” economic models.

$100 Million to Capture the AI Track

The strategic partnership with Aethir highlights Avalanche’s determination to capture the AI sector. Through a $100 million ecosystem fund, both parties will provide full-stack support from computing power to on-chain deployment for AI projects. For example, Kite AI’s AI blockchain developed on Avalanche has achieved real-time feedback for data processing, with applications covering medical diagnostics and supply chain optimization.

THE AMBITION BEHIND $250 MILLION FINANCING

In December 2024, the Avalanche Foundation completed a $250 million private financing round, with over 40 institutions including Galaxy Digital and Dragonfly participating. The funds are specifically designated for accelerating the Avalanche9000 upgrade and global ecosystem expansion.

The significance of this financing lies in: traditional VCs and crypto-native funds betting together reflects market recognition of the “modular public chain + vertical application chain” model; attracting more projects by reducing development costs and improving inter-chain interoperability creates a positive “capital-technology-user” cycle.

However, Avalanche’s differentiated path—balancing high performance, low cost, and sovereignty flexibility—may win it a unique position in the “multi-chain era.” If VanEck’s ETF is successfully issued, it will become a key bridge connecting traditional financial markets with the Web3 innovation ecosystem.

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