VanEck Updates Avalanche ETF Filing to Include Staking Rewards for AVAX Investors
VanEck has updated its S-1 filing for the Avalanche ETF, ticker VAVX, to incorporate staking rewards for investors holding AVAX. The fund intends to stake up to 70% of its AVAX holdings to generate yield. Coinbase Crypto Services has been named as the initial staking provider, charging a 4% service fee. Rewards after this fee will accrue directly to the fund and be reflected in the net asset value (NAV). If approved, the VAVX ETF would trade on Nasdaq under the ticker VAVX and track AVAX through the MarketVector Avalanche Benchmark Rate, a custom index. AVAX tokens would be custodied by regulated providers Anchorage Digital and Coinbase Custody, stored offline in cold wallets to ensure security. The ETF will not use leverage or derivatives. This update follows Bitwise's own spot Avalanche ETF filing last month, which was also modified to enable yield generation.
