- SEC is reviewing the VanEck Avalanche ETF, with a decision deadline set for July 28.
- Analyst Ali Martinez sees AVAX targeting $36 if it clears the $27 resistance.
- Futures open interest and technical levels signal growing bullish sentiment despite recent market volatility.
The U.S. Securities and Exchange Commission (SEC) is calling for public comments on the proposed VanEck spot Avalanche ETF, which could soon trade on Nasdaq. This marks another step in the SEC’s ongoing review of crypto-based ETFs, as Nasdaq aims to list the product under its commodity-based trust shares rule.
At the same time, Avalanche (AVAX) is making a quiet comeback after the recent market dip, with analysts like Ali Martinez predicting a potential 50% rally from current levels.
SEC Weighs Avalanche ETF Decision
According to the latest SEC filing, proceedings have officially begun to decide whether the VanEck Avalanche ETF will get the green light. Nasdaq initially filed the proposal on April 9, and it went public in the Federal Register on April 29. The next deadline for a ruling is set for July 28.
The ETF would track the spot price of AVAX using the MarketVector Avalanche Benchmark Rate Index. “The institution of proceedings does not mean we’ve reached a conclusion on the matter,” the SEC noted, hinting that legal and policy questions remain unresolved.
The SEC previously delayed its decision on June 12, extending the review period. Only one comment has been submitted so far, supporting the ETF’s approval. Meanwhile, Grayscale is also in the race, having filed its own Avalanche ETF application earlier this year. Bloomberg reports suggest a final decision could come by December 12, with ETF experts Eric Balchunas and James Seyffart assigning a 90% chance of approval.
Interestingly, VanEck has also launched its PurposeBuilt Fund to boost Avalanche-based projects, signaling strong confidence in the ecosystem’s long-term potential.
AVAX Price Targets $36 Amid Recovery
Following the broader market sell-off, AVAX is trading around $23.77—up 2% in the past 24 hours. Analyst Ali Martinez believes that if AVAX can break the $27 resistance, it could rapidly push toward $36. The daily range currently sits between $22.91 and $24.43, while trading volume has dropped by 25% in the last day, indicating a cooldown in trader activity.
Avalanche’s network fundamentals remain strong. A recent Messari report highlighted that the Octane upgrade has lowered transaction fees, accelerating DeFi and gaming adoption on the chain. On the technical side, AVAX is holding above its 50- and 100-day SMAs after rebounding from the 200-day SMA. RSI levels have cooled to 60 from 79, suggesting more room for upside momentum if buyers return.
Derivatives Market Shows Bullish Signs
CoinGlass data reveals a surge in futures activity, with total AVAX open interest jumping 5% to $637.4 million in just four hours. Binance, OKX, and Bybit saw futures OI climb over 5%, 3.5%, and 4% respectively. This points to renewed bullish sentiment among derivatives traders, who appear to be positioning for a breakout.
If these indicators align with a broader market recovery, AVAX could be setting up for a significant leg higher in the coming weeks.
