VanEck’s much-anticipated U.S. spot AVAX ETF failed to spark a rally, underscoring weak appetite for some altcoin products as crypto sentiment turned deeply negative in early 2026. Key takeaways - VanEck’s Avalanche (AVAX) ETF launched with zero inflows and only about $330K in trading volume — a muted debut compared with recent altcoin ETF rollouts. - By contrast, the Bitwise Solana (SOL) ETF recorded roughly $69M in inflows and $58M in volume when it launched on Oct. 29, and Canary Capital’s first U.S. spot XRP ETF drew about $245M in inflows on day one. Grayscale’s LINK ETF also attracted roughly $41M at launch. - Bloomberg analyst James Seyffart has said the top 20 crypto assets are likely to see at least one ETF, though he’s more “bullish on index products” than single-asset launches. Market reaction and sentiment Despite the ETF debut, market fear remained high. The crypto Fear & Greed gauge fell to 20 during the AVAX ETF launch and was only slightly healthier at 29 by press time — signaling persistent “fear” among speculators. Data from exchanges and derivatives platforms show little follow-through from traders: AVAX futures open interest collapsed from near $1 billion before the October crash to consistently below $200 million since. Price action The spot market mirrored the lackluster ETF response. AVAX posted only a 2% bounce and continued to trade near the $11–$15 late‑2025 range. Selling pressure that intensified in mid‑December eased around the $11 floor, and bulls tried to defend that level this week. However, the weak price reaction to the ETF raises questions about whether buyers can push AVAX back toward $13–$15. Outlook If AVAX loses the $11 support, the technical picture would worsen and the probability of a deeper correction — potentially taking prices below $10 — would increase while bearish sentiment persists. Conversely, stronger inflows or a pick-up in futures open interest would be needed to revive conviction among traders. Disclaimer This article is informational only and is not investment advice. Trading cryptocurrencies carries high risk; readers should do their own research before making financial decisions. Read more AI-generated news on: undefined/news

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