The PENGU Spot ETF is the first NFT-based crypto ETF application, as Canary Capital aims to merge NFTs and DeFi—will the SEC approve this groundbreaking move

January 2024 marked a pivotal point in the crypto industry: the US Securities and Exchange Commission (SEC) approved a bunch of 

 (ETFs) after a decade of resisting it. Later that year, several Ethereum (ETH) Spot ETFs were also approved. These early successes encouraged investment funds focused on digital assets to seek approvals for other 

 (AVAX) and other high-cap cryptos have ended up on the SEC's desk in recent months.

Until Mar 20, 2025, one thing had never occurred: an 

-based crypto ETF application. Such a move was thought to border on impossibility, given how stringently and at length the SEC evaluated ETF applications even for established fungible cryptos. And yet, the Canary Capital investment manager submitted an application to the SEC for approval of the first NFT-focused crypto ETF product, the PENGU Spot ETF, triggering a mini-revolution in the emerging space at the junction of crypto and traditional finance.

If approved, this ETF will be the first of its kind in the industry, based on a mix of 

. Many observers expect Canary Capital to struggle mightily for SEC endorsement of its revolutionary product. Nevertheless, the SEC now has a track record of approving crypto ETFs — which raises hopes for both the altcoin ETFs mentioned above and the PENGU Spot ETF application.

The PENGU Spot ETF is a proposed exchange-traded fund (ETF) product introduced by the Canary Capital investment management firm, and is currently awaiting approval by the SEC. 

 on Mar 20, 2025, making this the first crypto ETF product with an NFT component that’s vying for the approval of America's primary financial regulator. The ETF has been registered in the US state of Delaware.

The Pengu Spot ETF's portfolio is envisioned as consisting primarily of PENGU tokens that will make up anywhere between 80% and 95% of total assets held, with the rest allocated to Pudgy Penguins NFTs. Small portions of Solana's SOL coins and Ethereum's ETH tokens will also be included in order to facilitate transactions and liquidity support, as PENGU tokens are mainly issued on the Solana blockchain, and Pudgy Penguins NFTs are an Ethereum-based collection. 

Since Canary Capital will hold these assets and periodically rebalance the portfolio, gas fee payments on Solana and Ethereum will apply, with fees paid in SOL and ETH, respectively.

Launched in 2021 on Solana, the Pudgy Penguins NFT collection consists of 8,888 items, each depicting a cute penguin with a distinct combination of five different traits. In December 2024, the project introduced a related fungible cryptocurrency, the Ethereum-based PENGU token. As of Apr 2, 2025, PENGU is a smaller-cap asset, ranked 191st in the crypto market, with a total 

 of $319 million. In contrast, Pudgy Penguins are among the leading projects in the NFT space, ranked second among all NFT collections, with a market cap of $155 million.

Canary Capital's application to the SEC is unique in two ways: it’s the first ETF with an NFT component, and it marks the first time ETF approval has been sought for a relatively smaller-cap cryptocurrency, PENGU, which isn’t even among the top 100 crypto assets by market cap. All of the other crypto ETF applications approved by the SEC (or currently vying for approval) are based on high-cap, leading assets that are typically ranked within the top 30.

As of Apr 2, 2025, the SEC has had the application for the PENGU Spot ETF application for just two weeks. The regulator has up to 240 days to review such applications, although historically, the SEC has pondered over crypto ETF applications for years. Now, however, the string of Bitcoin and Ethereum Spot ETF approvals in 2024 raises hopes that newer submissions may be subject to an already established evaluation framework — and thus greenlighted much faster.

At the moment, the SEC is also considering spot ETF applications for several high-cap cryptocurrencies, including Dogecoin, Solana, Polkadot, 

 (XRP). If the regulator decides to approve the applications in batch mode — all or several at once — Canary Capital will have reason to hope that its ETF is included.

However, there's been skepticism regarding the PENGU Spot ETF application, with some analysts believing that its chances might differ from those of the larger, more established altcoin ETFs. This isn't surprising, as a PENGU Spot ETF would be a distinct product, being the first NFT-focused ETF. In addition, NFTs have more limited liquidity than fungible cryptocurrencies. 

NFTs may also be harder to valuate objectively. The prices of fungible cryptos are easily sourced from the crypto market, where supply and demand establish their value. In contrast, the limited liquidity and uniqueness of NFTs makes it much harder to price them efficiently.

Moreover, the PENGU token — which will make up most of the proposed ETF — isn't among the most traded assets in the crypto market. Because PENGU has a modest position in the crypto space (along with its origins as a 

), the SEC could view it with more skepticism than it does the leading altcoins.

Naturally, all these factors are just speculation at this point, and we’ll need to wait on the SEC’s initial comments regarding the first NFT-based ETF under their consideration in order to form a more defined view of the product's prospects for approval.

Current impact of the PENGU Spot ETF application on the crypto market

The news of the PENGU Spot ETF application has so far had no appreciable impact on the price of the PENGU token itself. On the day of the application (Mar 20, 2025), the token was trading at around $0.007. Two weeks later, it's still hovering around the same price. 

On the other hand, there's been a modest increase in the average price of Pudgy Penguins NFTs traded on the market: between March 20 and 28, the average price rose by 16% from around $16,450 to $19,120, though it has since retraced slightly to $17,490 as of Apr 2.

Given the modest price effect, investors are likely still cautious about the chances for the PENGU Spot ETF's approval.

However, if it is approved, the broader impact on the crypto market could be far-reaching, as such a step would signify the SEC's openness to both NFT-based ETFs, and ETFs made up of smaller-cap cryptocurrencies, including meme coins. The number of tokenized asset funds that offer NFT-based products would then be likely to increase significantly, facilitating mainstream NFT adoption within traditional financial markets.

An SEC approval of the PENGU Spot ETF may lead to a flurry of further ETF applications based on NFTs in some form. This could even include the first ETFs composed entirely of NFTs. Other crypto asset types — e.g., 

 (RWAs) — may also become candidates for the SEC’s consideration. Furthermore, in the unlikely event that Canary Capital’s PENGU Spot ETF were to be approved ahead of the altcoin spot ETFs currently in the SEC’s pipeline, it would send a very strong signal that those ETF applications are also a sure bet.

The current PENGU Spot ETF application is a pioneering event that may open up opportunities for NFT ETFs and other crypto ETFs based on partial NFT holdings. Although the SEC approved multiple Bitcoin Spot ETFs in early 2024, few people expected an NFT-based ETF to emerge so soon afterward. Probably even fewer expected a meme coin–based ETF to be taken seriously by the SEC. Unique in so many ways, the PENGU ETF flips the entire concept of traditional ETFs on its head.

Canary Capital's attempt to get approval for an NFT-backed ETF is truly a bold undertaking, though observers said the same thing about 

 just a few years ago. Someone needed to become a trailblazer in this area — and Canary Capital has taken up the noble role without hesitation. Now, all eyes are on the SEC as it prepares to weigh in on a product it has never before encountered.

Intermediate

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PENGU Spot ETF: A bold move for NFT investing — or just hype?

Approval of an Aptos Spot ETF could drive price growth and mainstream adoption by offering regulated, accessible exposure to APT for investors.

In early March 2025, Bitwise Asset Management, Inc. filed an S-1 registration statement with the SEC to launch a Aptos Spot 

 (ETF), sparking fresh excitement in the crypto market. Known for its cutting-edge blockchain architecture and lightning-fast transactions, Aptos is gaining traction, and now joins the growing list of projects seeking mainstream investment products. 

This article describes how an Aptos Spot ETF works, its potential impact on the market, regulatory hurdles and the significance of potential approval for the future of altcoin investments. Could this be the move that propels Aptos to blockchain supremacy?

An Aptos Spot ETF is an exchange-traded fund that physically holds the 

 (APT) cryptocurrency and directly tracks its real-time price, providing investors exposure to its market performance without needing to own the asset itself.

An Aptos Spot ETF would operate by acquiring Aptos tokens through authorized participants (APs), typically large financial institutions. These APs play a crucial role in the creation and redemption of ETF shares. They purchase Aptos tokens, either from the open market or directly from exchanges, and transfer them to the ETF in exchange for newly issued shares.

Once the tokens are bought, the ETF stores them securely, often through specialized custodial services that ensure transparency and regulatory compliance. The ETF tracks the value of Aptos (APT) by referencing a specific pricing benchmark, such as the CF Aptos-Dollar Settlement Price, aggregating data from major trading platforms in order to accurately reflect the APT token’s market value. 

Creation and redemption of Aptos Spot ETF shares

Creation and redemption of ETF shares takes place in large blocks, known as Baskets, which typically consist of 10,000 shares. APs are key in maintaining liquidity and ensuring that the ETF’s price stays aligned with the value of the underlying asset. 

In the creation process, an AP delivers cash for an amount equivalent to the value of the ETF shares it wants. The fund’s sponsor then uses this cash to acquire Aptos tokens from pre-approved trading counterparties, who operate independently of the APs. Once the tokens are acquired, the ETF issues the corresponding number of shares to the AP, which can then sell them on the open market.

On the flip side, during the redemption process, an AP wishing to redeem ETF shares returns the specified number of shares to the fund. In return, the AP receives cash for an amount equivalent to the value of the underlying Aptos tokens. To fund this redemption, the sponsor arranges for the sale of the required Aptos tokens to approved counterparties, and the cash proceeds are used to fulfill the redemption request.

Once created, ETF shares are listed and traded on public stock exchanges, allowing investors to buy and sell them as they would traditional stocks during market hours. This provides liquidity and accessibility to a broader range of investors.

The ETF provider charges an annual management fee for overseeing the fund's operations. These fees compensate the provider for managing the fund and ensuring its alignment with the underlying asset's performance. This mechanism ensures that the Aptos Spot ETF stays closely aligned with the market value of Aptos tokens, while offering investors the convenience of trading ETF shares on traditional financial markets.

On Mar 5, 2025, Bitwise Asset Management submitted an 

 to the US Securities and Exchange Commission (SEC), seeking approval to launch an Aptos Spot ETF. To address regulatory concerns, Bitwise has decided to exclude a staking provision from the Aptos ETF. (

 allows users to earn rewards by holding their cryptocurrency instead of selling it, but this can complicate ETF structures and raise issues with the SEC.) 

Bitwise still needs to submit an SEC Form 19b-4 for its Aptos Spot ETF application. Once the SEC acknowledges receipt of the 19b-4, the review process will officially begin, which could take several months. With the SEC grappling with an increasing number of Spot ETF applications, Bitwise's filing is expected to draw significant attention. The outcome could set an important precedent for the future of altcoin ETFs in the US.

Current impact of Aptos Spot ETF applications on the crypto market

The announcement of Bitwise’s filing for an Aptos Spot ETF had an immediate and positive effect on the crypto market. In response to the news, 

, jumping more than 18% to around $6.48. This spike reflected investor optimism surrounding the potential approval of the ETF and the impetus it would provide for growing acceptance of Aptos in traditional financial markets.

The market’s reaction highlights a rising interest in alternative cryptocurrencies, as well as the anticipation of more diversified investment options. While the approval of the Aptos Spot ETF is still uncertain, the filing has already had a significant impact on market sentiment, demonstrating the powerful influence of regulatory developments on cryptocurrency valuations.

What will it mean if an Aptos Spot ETF application is approved?

​The approval of an Aptos Spot ETF by the US SEC would mark a significant milestone in the cryptocurrency and traditional finance sectors. 

Looking to capture the market and trade APT tokens? Bybit offers the 

The potential approval of an Aptos Spot ETF represents a transformative moment for both the crypto and traditional finance sectors. It promises increased accessibility and liquidity for Aptos, while also offering institutional and retail investors a regulated means to gain exposure to Aptos via its APT token. Enhanced price discovery and regulatory validation could stabilize the token’s value and boost market confidence. Finally, success in this application may pave the way for additional altcoin ETFs, broadening investment opportunities and further integrating cryptocurrencies into mainstream financial markets.

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Aptos Spot ETF: Fast track to blockchain supremacy

Following the success of recent Bitcoin and Ethereum Spot ETFs, asset managers are actively pursuing the creation of spot ETFs for altcoins. Learn more here.

US president Donald Trump's return to office has ignited renewed institutional interest in 

 (ETF) applications centered on these innovative digital assets. This surge reflects a growing recognition of altcoins as viable investment opportunities. 

In this article, we’ll take a deep dive into the dynamic 

 landscape, spotlight key altcoins that are drawing ETF proposals and discuss the potential market impact and regulatory challenges. 

An altcoin spot ETF application is a formal request submitted to regulators to create an exchange-traded fund (ETF) that directly holds altcoins (cryptocurrencies other than 

) as underlying assets, allowing investors regulated exposure to the altcoins’ real-time market prices without owning the altcoins themselves.

How does an altcoin spot ETF application work?

The process of applying for such an ETF in the United States involves several detailed steps, primarily overseen by the Securities and Exchange Commission (SEC).

During its review, the SEC assesses several critical factors to determine whether the altcoin is suitable for inclusion in an ETF. The agency examines the market surveillance capabilities of the exchange, ensuring it can effectively monitor trading activities to prevent fraud and manipulation. In addition, the SEC evaluates custody solutions to guarantee secure storage of the altcoin, protecting it against theft or loss. Finally, the agency considers the liquidity and market size of the altcoin, assessing its market maturity through indicators (such as trading volume and market capitalization) to ensure it can adequately support an ETF structure.

Current altcoin spot ETF application landscape

 in the United States in 2024, asset managers have expanded their focus to other cryptocurrencies. Major firms Grayscale Investments, Bitwise, VanEck and Canary Capital have filed applications with the US SEC for ETFs tied to cryptocurrencies such as 

 from Bloomberg Intelligence have assigned a 90% approval probability for a Litecoin ETF in 2025, with 

, Solana and XRP following at 75%, 70% and 65% likelihoods, respectively. 

In the international scene, Brazil's securities regulator, the Comissão de Valores Mobiliários (CVM), 

 Spot XRP ETF, the Hashdex Nasdaq XRP Index Fund. This ETF allows investors to gain direct exposure to XRP through Brazil's B3 stock exchange without the need to purchase and store the cryptocurrency themselves. 

Why is there a sudden rise in altcoin spot ETF applications?

Several factors have contributed to the surge in altcoin spot ETF applications.

An overview of altcoins with spot ETF applications

The growing interest in altcoin spot ETFs has led several asset managers in the US to file applications for a range of digital assets. Below is a detailed list of the altcoins currently targeted by spot ETF applications, along with the companies behind each filing.

 is a high-performance blockchain platform renowned for its scalability, speed and low transaction costs achieved through its unique Proof of History (PoH) 

. In February 2025, the SEC acknowledged several Spot Solana ETF applications from prominent asset managers, as follows.

Currently under review, these applications collectively carry an estimated 70% likelihood of approval, though this outlook may be affected by the regulatory classification of SOL as a security. 

 is a decentralized cryptocurrency launched in 2011 as a faster, lower-cost alternative to Bitcoin. Dubbed "digital silver," it uses a 

 (PoW) consensus mechanism and serves primarily as a payment network.

Several asset managers have submitted applications for a Spot Litecoin ETF.

The SEC’s final decisions are expected by late 2025. Bloomberg analysts estimate a 

 for Litecoin ETFs in 2025, due to Litecoin’s commodity classification and reduced regulatory risks as compared to other cryptocurrencies. Analysts also highlight that Litecoin’s technical similarities to Bitcoin are favorable factors in the ongoing review process.

’s decentralized blockchain platform is designed to enable interoperability between different blockchain networks. Pending DOT Spot ETF applications include the following.

The applications are under review by the SEC, and 21Shares recently 

its application in early March, 2025, indicating active collaboration with the SEC. 

 is a third-generation blockchain platform that uses a 

 (PoS) consensus mechanism, making it more energy-efficient than PoW blockchains. It’s known for its rigorous, peer-reviewed development process and focus on sustainability, scalability and interoperability. 

filed the first-ever (and, so far, only) Spot Cardano ETF application 

 with the SEC, aiming to list the ETF on the New York Stock Exchange (NYSE). 

Grayscale's Spot Cardano ETF application is currently under review by the SEC, with the regulatory body 

 on Feb 24, 2025. The SEC's decision is expected by August 2025. 

 is a decentralized public network that uses the novel 

 (based on a directed acyclic graph, or DAG) to offer high-speed, secure and energy-efficient transactions. It’s designed as an alternative to traditional blockchain systems, supporting applications across various industries like finance, gaming and healthcare. 

The following asset managers have submitted HBAR Spot ETF applications.

The SEC review process for the HBAR Spot ETFs has begun. It can take up to 240 days for a full response. However, HBAR isn’t considered a security by the SEC, which could potentially expedite the approval process for an HBAR Spot ETF. 

 is a decentralized oracle network that helps connect smart contracts to real-world data, ensuring that these contracts can securely and reliably access external information. 

Although no asset managers have filed for a Spot ETF focused solely on Chainlink (LINK), the asset is gaining exposure through broader crypto ETF filings. For instance, Hashdex's crypto ETF, which also features major cryptocurrencies like Bitcoin and Ethereum, includes Chainlink in its portfolio. This ETF application 

 on Nov 25, 2024, and is currently under review.

 cryptocurrency that originated as a satirical take on the burgeoning digital currency market. Despite its humorous beginnings, Dogecoin has developed a significant following and has been used in various charitable events and crowdfunding campaigns. 

Asset managers who have submitted applications for Dogecoin (DOGE) Spot ETFs include the following.

These applications are currently under review by the SEC, and a decision regarding Grayscale's application is anticipated by mid-October 2025. 

 blockchain platform developed by Ava Labs and launched in September 2020. It’s designed to support fast, scalable and secure 

The following asset managers have submitted applications for 

These applications are currently under review by the SEC. 

 is a Layer 1 blockchain platform developed by Aptos Labs, founded in 2021 by former Meta (Facebook) employees Mo Shaikh and Avery Ching. Leveraging the Move programming language, initially created for Meta's Diem project, Aptos aims to deliver a scalable, secure, and efficient infrastructure for DApps. 

As of now, Bitwise Asset Management is the only asset manager that has 

 for an APT Spot ETF. The application, submitted on Mar 5, 2025, is still pending with the SEC.

 is the native digital asset of the XRP Ledger, an open-source blockchain designed to facilitate fast, low-cost and energy-efficient cross-border payments. XRP aims to provide a scalable alternative to traditional financial systems such as SWIFT. 

All of these applications are currently under review by the SEC, with possible approvals expected later in the year.

 is a Layer 1 smart contract platform designed to enhance digital asset ownership by making transactions fast, secure and accessible. Its PoS consensus mechanism and use of the Move programming language enable Sui to support high-speed transactions and a wide range of DApps, positioning it as a scalable solution for various blockchain use cases. 

 with the SEC to launch an ETF tied to the spot price of SUI. This filing represents the first, and for now, only attempt to introduce a SUI-backed ETF in the United States.

The SEC has acknowledged receipt of Canary Capital's application, kicking off the regulatory review process. 

 is an Ethereum Layer 2 blockchain platform built to improve scalability and efficiency. It leverages the Move programming language for faster transaction speeds and lower costs, seeking to establish itself as a next-generation blockchain solution.

 for an ETF designed to track the MOVE token. Submitted on Mar 10, 2025, this marks the first, and currently the only, application for a MOVE Spot ETF.

The SEC is currently reviewing the application, having confirmed receipt.

Could this trend pave the way for crypto mainstream adoption?

The growing number of altcoin spot ETF applications and potential approvals could significantly impact the cryptocurrency landscape, potentially accelerating mainstream adoption. Here's how.

Historical data suggests that significant regulatory milestones, such as ETF approvals, often lead to market rallies. For instance, following the SEC's approval of Bitcoin Spot ETFs in early 2024, Bitcoin's price surged over 

, reaching a peak of $100,000. This rally contributed to the overall cryptocurrency market cap’s climb to approximately $3.5 trillion. Similarly, spot ETF approvals could trigger a bull run, as increased demand drives up prices. With easier access to crypto investments, more individuals and institutions may enter the market, further driving adoption and innovation within the ecosystem.

While the outlook is optimistic, it's essential to approach these developments with caution.

, and their market movements can be unpredictable. Investors should 

 and consider their risk tolerance before investing in cryptocurrencies or related products.

The altcoin Spot ETF landscape is rapidly expanding as asset managers like Grayscale, Bitwise, 21Shares and Canary Capital file applications for digital assets beyond Bitcoin and Ethereum. With ETFs targeting Solana, Litecoin, Polkadot, Cardano and other altcoins, these initiatives aim to enhance market accessibility and institutional participation, though final approval remains subject to regulatory review.

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Crypto ETF landscape: An overview of altcoins with ETF applications

Avalanche Spot ETF could bring institutional access to AVAX. Learn about VanEck’s SEC filing, its impact on AVAX, and what approval could mean.

 (AVAX) is one of the cryptocurrency industry's major 

 (EVM)–compatible blockchains. Its native coin, AVAX, ranks among the top assets in the market, in 16th position by 

After the US Securities and Exchanges Commission (SEC) approved 

 (ETH) ETFs in mid-2024, several other prominent 

, including AVAX, are now vying for the same privilege.

In March 2025, VanEck, one of the major investment fund managers in the world, applied to the SEC to approve its newly registered Avalanche Spot ETF. With this application, AVAX joins 

 (DOT) as one of the altcoins seeking spot ETF status. If approved, the AVAX ETF will mean a significant milestone for the project, likely strongly affecting the coin's market performance. The project’s team, backers and VanEck are all keeping their fingers crossed for approval. Current AVAX 

ers are another group that’s eager to see the application receive a nod from the SEC.

Many others in the crypto community are also keeping an eye on the application, although it’s unclear whether the approval process will be a swift affair or a long-winded marathon. The SEC has historically drawn out the Bitcoin ETF approval process over several years, sometimes delaying approvals with vague reasons yet also raising valid concerns at times. 

AVAX’s ETF approval might follow a similar trajectory. On the other hand, the new US administration of Donald Trump is widely viewed as crypto-friendly, particularly after the recent announcement of the planned US 

. While AVAX isn’t among the coins included in the fund, the general crypto-friendly stance of the new administration raises hopes for a quick and painless approval process.

In this article, we’ll cover VanEck’s AVAX Spot ETF, the implications for its potential approval and what it means for the future of AVAX and the Avalanche blockchain in general.

The Avalanche (AVAX) Spot ETF is an ETF product registered in the US state of Delaware by the VanEck investment management firm. 

As of Mar 25, 2025, it's under review by the SEC, America’s primary financial regulator. If approved, the ETF will trade on regulated US stock exchanges. It will consist of AVAX crypto currency, and will track the MarketVector™ Index's Avalanche Benchmark Rate. VanEck submitted the application in mid-March 2025, and if cleared it will be the first Avalanche Spot ETF on the market.

The Avalanche Spot ETF would allow investors to access AVAX through regulated markets. Like any other ETF, the AVAX ETF would be available for trading on stock exchanges during market hours, and over-the-counter (OTC). This would create opportunities for many investors, particularly 

 investors who couldn’t buy the crypto before due to regulatory barriers.

The Avalanche Spot ETF would offer investors direct exposure to AVAX, unlike derivative products such as 

. Another advantage would be that ETFs are highly liquid, offering easy access through regulated exchanges. Investors would also avoid the complexities of buying, selling and holding AVAX through the blockchain system. For many investors who aren’t familiar with crypto, setting up wallets and dealing with blockchain can be a hassle. An AVAX ETF would allow them to simply buy and sell it for fiat, based on the value of the ETF at that time.

In theory, the SEC might approve the option for in-kind redemption (i.e., ETF shares are exchanged directly for AVAX tokens), or cash-based redemptions (whereby ETF shares are bought or sold for fiat currency). However, this is unlikely to occur, at least in the initial period after the approval. So far, even 

 — the first crypto ETF products approved by the SEC — have largely followed the cash redemption model. Thus, direct in-kind redemption for AVAX coins isn’t expected following the approval.

There are currently no spot ETFs based on AVAX approved by the SEC. If VanEck’s application is successful, it will be the first Spot Avalanche ETF on the market.

, with the first approvals announced in January 2024, and Spot Ethereum ETFs, which were cleared in mid-2024. Several other altcoins, including SOL, XRP, LTC and DOT, are also seeking ETF approval. The AVAX ETF is the latest among these applications.

At the same time, there are also approved futures-based crypto ETFs, which predate their spot counterparts. The first one among 

, ProShares Bitcoin Strategy ETF (BITO), was approved in October 2021. Meanwhile, the first 

 were approved two years later, in October 2023. However, there have never been AVAX futures ETF applications to the SEC. Thus, if approved, VanEck’s Avalanche Spot ETF will be the first AVAX-based ETF on the market.

Current impact of Avalanche ETF applications on the crypto market

The news of VanEck’s application to the SEC first surfaced on Mar 14, 2025. Some observers might have anticipated that the news would positively influence AVAX's price. However, AVAX's price remained sideways for some time afterward. Its recent increase on Mar 24, 2025, was likely driven by positive market sentiment following the Federal Open Market Committee (FOMC) meeting in which officials unanimously voted to 

. Over the past week, AVAX's price trajectory has closely mirrored Bitcoin’s and the broader crypto market. This suggests that investors haven’t significantly reacted to the news, possibly expecting the SEC to take its time reviewing the application.

The SEC is known for dragging out reviews of crypto ETF submissions. Approval could take months or even years if the regulator raises concerns over any aspects of the application. A fun fact in the crypto folklore is that it took the SEC 

 Bitcoin Spot ETFs, from when the first of these products' applications were submitted in 2013 to the first approvals in January 2024. Naturally, this was during quite a different era, when crypto was still emerging as a financial asset.

The crypto landscape in 2025 is drastically different. Given that the SEC has already established a procedure for crypto spot ETF approvals, it’s unlikely that VanEck's AVAX ETF application will face multi-year delays. Now that the SEC has a history of clearing crypto spot ETFs, the process will likely be much shorter.

What will it mean if an Avalanche ETF application is approved?

If the application is approved, it's likely to spark increased interest in AVAX from institutional investors. Due to regulatory constraints, many of these investors have so far stayed away from crypto, including AVAX. The Avalanche Spot ETF would provide them access to the coin through the regulated environment of stock exchanges. This influx of institutional investment may well lead to price appreciation for AVAX. 

While this price effect isn't guaranteed, historically, such ETF approvals have had a significant impact on the prices of cryptocurrencies. For example, when the SEC approved Bitcoin Spot ETFs on Jan 10, 2024, BTC was trading at around $46,600. Following the approval, Bitcoin's price surged, crossing the $70,000 barrier two months later.

The approval of the AVAX Spot ETF could also attract more institutional interest in the Avalanche 

 as a technology platform. Avalanche has already partnered with notable financial players, including JPMorgan and Mastercard, to provide blockchain-based services. Approval of the ETF could lead to further partnerships and integrations between the Avalanche chain and financial institutions and companies in other industries.

The potential approval of the Avalanche Spot ETF could significantly change the crypto ETF landscape. If VanEck's application is cleared, it may also create an easier route for subsequent crypto ETF applications for smaller coins. Thus, the implications could be far-reaching. The AVAX coin will also likely experience price growth, as it will no longer be restricted to trade on crypto exchanges only, and will enter the lucrative domain of institutional investing through stock exchange platforms.

The potential Avalanche Spot ETF is also in the company of several other altcoin-based ETFs awaiting approval by the SEC. Thus, the collective nature of these applications puts further pressure on the US financial regulator. 

If the SEC is reluctant to quickly clear all of these ETFs, it will need a highly plausible reason to justify its position. In the atmosphere of the maturing crypto market and past approvals for Bitcoin and Ethereum Spot ETFs, finding such a reason might prove to be tricky. Therefore, most of the signals point to a positive future outcome for the AVAX ETF. The key question is — when will the potential big YES arrive?

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Avalanche Spot ETF: Expanding institutional access to AVAX

Discover the 11 best gold-backed cryptos of 2025, offering real asset security amid market volatility. Explore top tokens like XAUt, PAXG & more.

The early months of 2025 have ushered in a flurry of changes in financial markets, primarily caused by the new US presidential administration of Donald Trump. Drastic cuts to US public spending, the threat of tariff wars and a new paradigm in the relationship between the US and its trading partners have unnerved markets and caused 

 prices and investor sentiment to take a hit. As stocks have dived, the crypto market has also slowed, reflecting the overall negative outlook prevalent among investors across different markets.

The world's primary precious metal commodity, 

, is surging in an atmosphere of largely declining investor sentiment. This is hardly surprising to anyone familiar with the history of financial markets. The yellow metal has always done well when stocks are getting hammered and the outlook for growth-dependent assets is souring. As of the time of this writing on Mar 24, 2025, gold’s price has appreciated by around 5% over the past 10 days. This change might seem insignificant to crypto investors, who are used to much more volatile swings in the price of their assets. Still, it represents a notable weekly jump for gold, an asset known for its price stability and low volatility. 

As gold rallies, many in the crypto investment world are turning their attention to a previously unassuming category of the market — gold-backed cryptocurrencies. While the broader crypto market is rather lethargic, cryptocurrencies in this category are posting weekly growth rates that virtually mirror the growth in the price of gold. If you’re a crypto investor looking for a safe harbor in these times of uncertainty, gold-backed tokens might just be the answer. In this article, we’ll cover the top 11 gold-backed cryptos as of Mar 24, 2025, which together make up nearly the entirety of this small category's total 

A gold-backed cryptocurrency is a tokenized digital asset whose value is typically supported by reserves held in gold. In some cases, the token issuer holds the gold reserves used to back the cryptocurrency. In other cases, a third-party trusted custodian maintains the reserves of the underlying physical gold on behalf of the issuer.

The earliest notable gold-backed cryptocurrencies were launched around 2019–2020. Among these are Tether Gold (XAUt), introduced in 2020, and Pax Gold (PAXG), which debuted in 2019. Another notable player in this area, Perth Mint Gold Token (PMGT), operated between 2019 and 2023.

Gold-backed cryptos let you turn gold ownership into a more flexible and liquid form for 

Besides buying gold crypto assets as a hedge against the volatile crypto market, you can also trade gold and other asset classes — such as crypto, forex and market indices — via 

. This product lets you access multi-asset trading opportunities alongside benefits like high leverages of up to 500x, tight spreads, competitive fees and 24/7 support.

How do gold-backed cryptocurrencies work?

As noted above, gold-backed cryptocurrencies are based on physical gold reserves. The exact mechanics of the reserve maintenance can vary. Some projects store the gold themselves, while others rely on external custodians to handle the storage.

These cryptocurrencies appeal to investors who want crypto exposure, but prefer a real-world asset's security. Gold serves as an excellent backing for a digital asset, as it’s a well-established and widely respected commodity. During 

, as stocks and cryptocurrencies plunge, gold tends to rise in value, potentially lifting gold-backed cryptos up with it.

Like any other asset on the market, gold-backed tokens have unique pros and cons. One con is that in a booming market, they tend to offer lower returns as compared to standard cryptocurrencies or other high-growth assets. Another drawback is the lack of unified regulatory mechanisms to ensure that the gold reserves actually exist, are maintained at the claimed levels and are held by a trustworthy party. Sufficient liquidity can also be an issue for smaller projects.

On the positive side, the biggest advantage of these assets is security during bear markets: as financial markets turn south, gold-backed cryptos are more likely to hold their value than other cryptocurrencies. Another key pro is owning tokens propped up by a 

 — an excellent way to silence crypto skeptics who constantly claim that these assets have no intrinsic value behind them.

The 11 gold-backed crypto assets we list below represent nearly the entire market niche. As of mid-March 2025, the 

 with reportable market caps under the category of "Tokenized Gold."

Their prices, caps, growth rates and other relevant statistics are valid as of this writing. Naturally, this data may change substantially, given the volatile nature of the crypto market. However, the backing by gold normally gives these assets a somewhat higher degree of stability as compared to other types of cryptocurrencies (

 (XAUt) is the most dominant gold-backed cryptocurrency on the market. It was introduced by Tether Limited Inc., the company behind USDT, the world’s most traded crypto asset.

Each XAUt token is backed by one troy ounce of gold, with the physical gold bars securely stored in Swiss vaults. Holders can redeem their XAUt for physical gold at any time. However, to do so, you’ll need to have enough XAUt tokens for the price of a full London Good Delivery physical gold bullion bar (approximately 400 troy ounces/XAUt). If you own less XAUt than that, swapping it for other assets, typically USDT, is the more practical option. You can 

Over the past 10 days, XAUt's value has grown by 5% — exactly in line with the price of gold, which XAUt closely tracks. Launched on Ethereum as an 

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