Leading crypto asset manager VanEck has shared updates about its proposed Avalanche (AVAX) ETF with the U.S. Securities and Exchange Commission (SEC).
The latest filing reveals important details, including a management fee of 0.30% and the staking provider, Coinbase Crypto Services, which will handle staking rewards for AVAX held in the ETF.
VanEck also plans to list the ETF on Nasdaq under the ticker VAVX. These updates bring the ETF closer to launch, offering investors a way to track AVAX price performance while earning staking rewards on a portion of the fund’s assets.
VanEck Updates Avalanche ETF Filing with SEC
VanEck has submitted its third amendment to the S-1 filing for the Avalanche (AVAX) ETF with the U.S. SEC, taking another step toward launching a fund that tracks AVAX’s price. This ETF aims to give investors a simple way to gain exposure to AVAX while participating in staking rewards.
The updated filing shows a management fee of 0.30%, though VanEck has not announced any fee waiver yet. By comparison, the Bitwise Avalanche ETF charges slightly higher fees at 0.34% and offered a temporary waiver until it reached $500 million in assets.
This move highlights VanEck’s efforts to create a competitive and investor-friendly Avalanche ETF. Once approved, it will provide a regulated way for investors to access AVAX price performance, making it easier for both retail and institutional investors to participate in the growing Avalanche ecosystem.
Staking Provider and Rewards
VanEck’s Avalanche ETF will work with Coinbase Crypto Services as its official staking provider. This means a portion of the ETF’s AVAX tokens will be used for staking to earn rewards.
Investors in the ETF will benefit from these rewards, which will be credited regularly. From the staking rewards, Coinbase will take a 4% fee, while the custodian’s fee for facilitating staking is currently zero.
To make staking more flexible, VanEck is also partnering with Benqi Finance (sAVAX), Hypha (STAVAX), and Yield Yak (yyAVAX). These platforms provide liquid staking solutions, which allow investors to stake their AVAX while still keeping the tokens relatively accessible.
This setup ensures that investors can earn staking rewards without locking up all their tokens, giving them both profit potential and flexibility. Overall, VanEck’s staking approach aims to boost returns for ETF investors while keeping the process simple and transparent.
VanEck Avalanche ETF: Nasdaq Listing and Structure
The VanEck Avalanche ETF is set to trade on Nasdaq under the ticker VAVX, once it receives approval from the U.S. Securities and Exchange Commission (SEC) under the Generic listing guidelines. This ETF is designed to track the price of AVAX while also providing staking rewards to investors.
To ensure smooth operations, the ETF will have a clear structure: Anchorage Digital Bank will serve as the primary custodian, with Coinbase Custody Trust Company as the secondary custodian.
State Street Bank and Trust Co. will handle cash custody, administration, and act as the transfer agent. VanEck Securities Corporation will manage marketing and investor outreach.
The ETF’s main goal is to reflect the performance of AVAX while generating rewards from staking a portion of the trust’s AVAX holdings. The MarketVector Avalanche Benchmark Rate index will be used to track AVAX prices, providing investors with transparency and reliable market tracking.
AVAX Price Rebounds Amidst Market Volatility
AVAX has bounced back, rising more than 5% in the last 24 hours after a 12% drop over the past week. At the time of writing, the cryptocurrency is trading around $11.97, with daily lows at $11.28 and highs at $12.28.
Trading activity has also picked up, with volume increasing by nearly 36% in a single day. Data from CoinGlass shows growing interest in the derivatives market, as AVAX futures open interest climbed 1.3% in the last 24 hours, following a 1.7% rise in the previous four hours.
