AVAX ETF makes a cold debut, VanEck Avalanche ETF records zero inflow, reflecting the crypto market sentiment in January 2026

January 27 News, the United States’ first spot Avalanche-related ETF officially launched this week, but market reactions have been notably lukewarm. The Avalanche ETF launched by VanEck on January 26 did not record any net inflow on its first day, quickly attracting widespread attention from the crypto and Wall Street investment circles, and being seen as a microcosm of the current risk appetite cooling.

Data shows that the product’s first-day trading volume was approximately $334,000, with total assets around $2.41 million, but there was no substantial increase in funds. Even with the issuer offering a fee waiver until February 28, 2026, or until the scale reaches $500 million, investors still chose to wait and see. This reflects that, amid ongoing global macro uncertainties, even newly launched crypto investment tools find it difficult to quickly attract significant allocation funds.

After Trump retook the White House, the market once expected explosive growth in crypto-related ETFs, with multiple asset management firms sequentially deploying various mainstream altcoins. However, reality has been more cautious. The current market favors defensive assets, with some funds flowing back into what are seen as more stable allocation options.

However, ETF demand has not completely disappeared. Data from the same period shows that Bitcoin-related ETFs ended several days of outflows and saw slight inflows, while Ethereum-related ETFs attracted over $100 million, indicating that funds are not entirely withdrawing but prioritizing more mature and liquid targets. In comparison, mid-sized public chains like Avalanche are more difficult to become the first choice for capital rotation at this stage.

Crypto market observer Zia ul Haque pointed out that the zero inflow on the first day of VAVX indicates that Avalanche still has limited recognition among traditional investors, and institutional funds are waiting for clearer catalysts. Analyst Kaleo believes that the true value of ETFs often manifests in the medium to long term, and once macro conditions improve, the product could become a new entry point for funds.

It is worth noting that despite the subdued capital market response, Avalanche’s on-chain activity surged significantly in January, with daily active users on the C-chain increasing nearly 20-fold year-over-year, demonstrating that real usage demand is expanding. This phenomenon of “price decoupling from fundamentals” also reveals a core contradiction in the current crypto market: strong network growth but more cautious capital during risk contraction cycles.

From this perspective, the quiet debut of VanEck’s Avalanche ETF on its first day more closely reflects the true sentiment of crypto investment in early 2026.