VanEck Seeks to Add Staking to an Avalanche ETF
VanEck plans to launch an Avalanche-based ETF that would allow AVAX staking, offering investors an additional source of income.
The investment firm has updated its filings for an exchange-traded fund tied to the Avalanche cryptocurrency. In the revised application submitted to the U.S. Securities and Exchange Commission, VanEck disclosed that the proposed ETF, called VAVX, is designed to generate extra returns for investors through staking AVAX tokens.
According to the filing, the fund would be permitted to stake up to 70% of its AVAX holdings. Initially, staking services would be provided by Coinbase Crypto Services. Any staking rewards earned would flow back into the fund, minus a 4% service fee charged by Coinbase. These rewards would be reflected in the ETF’s net asset value.
VanEck also stated that the AVAX tokens would be held by regulated custodians such as Anchorage Digital and Coinbase Custody. In both cases, the assets would be stored in cold wallets, meaning they would remain offline. The fund will not use leverage or derivatives.
The ETF’s objective is to track the price of AVAX as closely as possible. To achieve this, it will rely on the MarketVector Avalanche Benchmark Rate, a dedicated index based on data from major cryptocurrency exchanges. If approved by regulators, the ETF’s shares will be listed on the Nasdaq under the ticker symbol VAVX.
It is worth noting that last month Bitwise submitted a similar update to its own spot Avalanche ETF application, also including provisions for generating additional income.
