U.S. Regulation

VanEck’s New Avalanche ETF Filing to Include Staking Rewards For AVAX Investors

VanEck has updated its filing for an Avalanche exchange-traded fund, VAVX, to include staking rewards and generate income for investors. In an amended S-1 filed with the U.S. Securities and Exchange Commission, the firm disclosed that the fund may stake up to 70% of its AVAX holdings to generate yield, with Coinbase Crypto Services listed as the initial staking provider.

Any rewards, minus a 4% service fee from Coinbase, would accrue to the fund and be reflected in the ETF’s net asset value. Under the plan, AVAX will be held with regulated custodians, including Anchorage Digital and Coinbase Custody, both of which store tokens offline in cold wallets.

The fund will not utilize leverage or derivatives, and it will track AVAX’s price through the MarketVector Avalanche Benchmark Rate, a custom index constructed from major exchanges. If approved, the fund would trade under the ticker VAVX on Nasdaq. Bitwise last month updated its spot Avalanche ETF filing with the SEC to also enable yield generation.

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