Catenaa, Thursday, February 12, 2026- VanEck said Avalanche (AVAX) was selected for its first alt-layer-one exchange-traded fund due to strong product-market fit, economic clarity, and active institutional engagement, according to executives on the latest episode of The Block’s podcast Layer One.
Matthew Siegel, VanEck’s Head of Digital Asset Research, discussed the firm’s decision during a conversation with Ava Labs’ VP of Business Development, Morgan Krupetsky, emphasizing the ETF’s ability to bridge traditional finance and decentralized finance markets.
Siegel noted that Avalanche demonstrated scalability, developer adoption, and institutional readiness that met VanEck’s investment standards.
The discussion also explored the distinction between digital asset trusts and ETFs, the innovator’s dilemma facing banks navigating DeFi, and the role of market downturns in separating serious builders from short-term participants.
Siegel stressed that periods of volatility provide a clearer view of sustainable projects, highlighting Avalanche’s strong developer ecosystem and real-world asset integration.
Krupetsky highlighted Avalanche’s L1 scaling vision, noting that the network’s architecture enables faster settlement and lower costs while supporting decentralized finance and enterprise applications.
The podcast addressed how banks are evaluating stablecoins versus traditional assets, the penetration of real-world assets into blockchain protocols, and approaches to private credit within DeFi ecosystems.
VanEck sees Avalanche as a model for institutional adoption, citing a dedicated business development team actively onboarding firms and ensuring compliance standards are met.
According to Siegel, the firm’s ETF aims to offer transparent exposure to alt-L1 tokens while mitigating operational and liquidity risks for professional investors.
