Bitwise Seeks Avalanche ETF Approval as XRP and Dogecoin Funds Prepare for Launch
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Crypto Asset Manager Expands ETF Strategy
Bitwise files for Avalanche-focused fund while preparing other altcoin offerings
Bitwise Asset Management has filed with the U.S. Securities and Exchange Commission for an exchange-traded fund tracking the performance of Avalanche (AVAX), according to decrypt.co. This move comes as the firm prepares to launch two other cryptocurrency funds focused on XRP and Dogecoin, signaling a significant expansion of altcoin investment products in traditional markets.
The filing, submitted on September 16, 2025, represents Bitwise's continued push to bring diverse crypto exposure to mainstream investors through regulated financial instruments. The company has established itself as a pioneer in cryptocurrency ETFs, having previously launched successful funds tracking Bitcoin and Ethereum.
Avalanche ETF Structure and Objectives
According to the filing documents obtained by decrypt.co, the proposed Bitwise Avalanche ETF would provide investors with exposure to AVAX, the native token of the Avalanche blockchain platform. The fund would not hold AVAX directly but instead track the performance of the cryptocurrency through futures contracts and other financial derivatives.
This structure mirrors Bitwise's approach with its existing crypto ETFs, allowing the fund to operate within current regulatory frameworks while still providing investors with targeted exposure to specific digital assets. The filing indicates the fund would trade on a major U.S. exchange, though specific listing details remain undisclosed.
XRP and Dogecoin Funds Set for Debut
Existing filings move toward launch phase
While pursuing the new Avalanche ETF, Bitwise is simultaneously preparing to launch two previously filed funds focused on XRP and Dogecoin. According to decrypt.co, these funds have completed the necessary regulatory processes and are approaching their market debut, though exact launch dates haven't been announced.
The XRP and Dogecoin funds represent Bitwise's strategy to capture investor interest in major altcoins beyond Bitcoin and Ethereum. Both cryptocurrencies have substantial market capitalizations and dedicated communities, making them attractive targets for institutional investment products.
Regulatory Landscape and Approval Process
The SEC's approval process for cryptocurrency ETFs remains rigorous, particularly for funds tracking assets beyond Bitcoin and Ethereum. Bitwise's filing for an Avalanche ETF enters a regulatory environment that has gradually warmed to crypto investment products but maintains strict requirements for investor protection and market integrity.
According to industry analysts cited by decrypt.co, Bitwise's established track record with previous crypto ETFs may work in their favor during the review process. The company has demonstrated operational competence in managing cryptocurrency-focused funds and maintaining compliance with regulatory requirements.
Avalanche Blockchain Fundamentals
The Avalanche blockchain, which would underlie the proposed ETF, operates as a decentralized platform supporting custom blockchain networks and decentralized applications. According to technical documentation, Avalanche uses a novel consensus mechanism that enables high transaction throughput—reportedly processing up to 4,500 transactions per second with sub-two-second finality.
The platform's native token, AVAX, serves multiple functions including paying transaction fees, securing the network through staking, and providing a basic unit of account across the multiple subnets operating within the Avalanche ecosystem. These technical characteristics form the fundamental value proposition that the proposed ETF would seek to capture for investors.
Market Context and Investor Demand
Bitwise's expansion into Avalanche, XRP, and Dogecoin ETFs reflects growing institutional interest in diversified crypto exposure. Traditional investors increasingly seek ways to gain targeted access to specific blockchain ecosystems without the technical complexities of direct cryptocurrency ownership.
The move also responds to evolving market dynamics where altcoins have demonstrated periods of outperformance relative to Bitcoin and Ethereum. By offering specialized funds, Bitwise aims to capture this demand while providing the regulatory protections and convenience of traditional investment vehicles.
Competitive Landscape in Crypto ETFs
Bitwise operates in an increasingly competitive space for cryptocurrency ETFs. Several asset management firms have launched or proposed crypto-focused funds, though most concentrate primarily on Bitcoin and Ethereum. Bitwise's strategy of targeting specific altcoins represents a differentiation approach that could capture niche market segments.
According to market data referenced by decrypt.co, the success of previous altcoin-focused investment products has been mixed, with some achieving significant assets under management while others struggled to gain traction. Bitwise's established distribution network and reputation in the crypto ETF space may provide advantages for these new offerings.
Potential Impact on Crypto Markets
The introduction of regulated investment products tracking specific cryptocurrencies like Avalanche, XRP, and Dogecoin could influence these assets' market dynamics. Historically, ETF approvals have correlated with increased institutional investment and improved liquidity for the underlying assets.
However, as decrypt.co notes, the actual market impact will depend on multiple factors including fund size, investor adoption rates, and broader market conditions. The derivatives-based structure of these funds means they won't directly purchase the underlying cryptocurrencies, potentially limiting their immediate effect on spot markets.
Investor Considerations and Risk Factors
Prospective investors should understand that cryptocurrency ETFs, including those proposed by Bitwise, carry unique risks beyond traditional equity funds. These include volatility inherent to digital assets, regulatory uncertainty, and the complexities of derivatives-based tracking strategies.
The filing documents obtained by decrypt.co highlight these risks, noting that the funds' performance may deviate from the underlying assets due to factors like contango in futures markets, management fees, and operational challenges. Investors should carefully consider their risk tolerance and investment objectives before allocating to these specialized products.
Future Outlook for Altcoin ETFs
Bitwise's aggressive filing strategy suggests confidence in both regulatory approval pathways and market demand for diversified crypto exposure. The success of these funds could pave the way for additional altcoin ETFs targeting other major cryptocurrencies.
Industry observers quoted by decrypt.co suggest that regulatory approval for these products would represent another milestone in cryptocurrency's integration with traditional finance. However, the timeline for approval remains uncertain, and the SEC may approach each filing with particular scrutiny given the unique characteristics of each underlying asset.
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