VanEck Enhances Avalanche ETF with Staking Rewards for AVAX Investors

VanEck's Avalanche ETF Filing Now Includes Staking Rewards

VanEck has revised its filing for the Avalanche ETF, VAVX, to incorporate staking rewards, aiming to generate income for AVAX investors.

An amended S-1 filed with the U.S. Securities and Exchange Commission reveals that the ETF may stake up to 70% of its AVAX assets to earn yield, with Coinbase Crypto Services as the primary staking provider.

Rewards, minus a 4% service fee from Coinbase, will be added to the fund's net asset value.

Custody and Investment Strategy

• AVAX tokens will be secured with regulated custodians such as Anchorage Digital and Coinbase Custody, utilizing cold storage.
• The fund avoids leverage and derivatives, tracking AVAX's price via the MarketVector Avalanche Benchmark Rate, a custom index from major exchanges.

If approved, the ETF will trade under the ticker VAVX on Nasdaq. Notably, Bitwise recently updated its Avalanche ETF filing to include yield generation as well.