AVAX ETF First Day Zero Inflows: VanEck Products Fall Out of Favor, Is the Meme Coin ETF Myth Cooling Down?

January 28 News, as of early 2026, market sentiment in the cryptocurrency space remains subdued, with some altcoins under particular pressure. VanEck’s launched US spot Avalanche (AVAX) ETF had a lackluster first day, recording no net fund inflow, with a total trading volume of only about $330,000 throughout the day, sparking discussions about the actual demand for altcoin ETFs.

In contrast, other similar products had a strikingly different debut. The Solana-related ETF launched by Bitwise at the end of October last year attracted approximately $69 million in inflows despite market volatility, with a trading volume approaching $58 million. In mid-November, Canary Capital’s first XRP spot ETF raised about $245 million on its debut day, and Grayscale’s LINK ETF also garnered around $41 million in interest. Compared to these, the “zero inflow” of the AVAX ETF appears particularly glaring.

Whether this result indicates a slow launch pace or reflects the market’s true attitude toward mid-tier altcoin ETFs remains uncertain. Bloomberg analyst James Seyffart pointed out that top-ranked cryptocurrencies by market cap are likely to launch ETF products in the future, but he personally favors index-based solutions over single-asset ones.

From the sentiment indicators, AVAX was in a clearly pessimistic zone during its listing. Its Fear & Greed Index once dropped to 20, then only slightly rebounded to 29, remaining in a state of “panic.” The ETF launch did not significantly alter market expectations, and speculative funds continue to remain cautious.

Derivatives data also confirms weak demand. Since a sharp correction in early October last year, AVAX’s open interest has rapidly shrunk from nearly $1 billion to below $200 million, indicating limited new participation in both spot and futures markets. In terms of price, AVAX has recently only rebounded slightly by about 2%, still oscillating within the $11 to $15 range.

Currently, bulls are trying to hold the key level around $11, but market reactions to ETF-related news are tepid, putting the sustainability of the rebound to the test. If the lower boundary of the range is broken, price volatility risks could further increase, and short-term trends will depend on whether there is a substantial improvement in market liquidity.