VanEck has filed an amended S-1 with the U.S. Securities and Exchange Commission to launch a new Avalanche ETF, ticker VAVX. This fund will stake up to 70% of its AVAX holdings to generate staking rewards, offering investors an income stream alongside price exposure. This development could reshape how investors access yield from their crypto holdings.

Disclaimer: This article is for informational purposes only and is not investment advice. Consult a financial advisor before investing.

VanEck’s updated filing discloses that the fund plans to use Coinbase Crypto Services as its initial staking provider. The fund will receive rewards from staking AVAX, reduced by a 4% Coinbase fee, which will be reflected in the ETF’s net asset value (NAV).

“By integrating staking within the ETF structure, investors may gain yield without handling private keys or managing complex staking processes,” VanEck's approach suggests.

• Up to 70% of AVAX holdings staked
• Staking rewards minus 4% Coinbase service fee accrue to fund

Will staking rewards influence your decision to invest in AVAX ETFs?

The fund will store AVAX tokens with regulated custodians including Anchorage Digital and Coinbase Custody. Both use offline cold wallets, reducing security risks associated with crypto assets.

This custody approach meets regulatory expectations and offers investors reassurance regarding asset safety.

• AVAX held by Anchorage Digital and Coinbase Custody
• Cold storage helps prevent hacking and theft

How important is custodian security in your crypto investments?

VanEck’s ETF will not use leverage or derivatives and will track the AVAX price via the MarketVector Avalanche Benchmark Rate, a custom index from major exchanges. This conservative approach focuses on transparent, direct AVAX exposure with income enhancement.

Experts note this structure could broaden institutional appeal by mitigating common crypto ETF risks.

• No leverage or derivatives used
• Tracks MarketVector Avalanche Benchmark Rate

Does a straightforward portfolio design encourage your confidence in AVAX ETFs?

If approved and listed on Nasdaq under ticker VAVX, VanEck’s Avalanche ETF could attract investors seeking both price appreciation and staking income from AVAX. This product follows Bitwise’s similar move to enable yield generation on their Avalanche spot ETF.

The ability to earn staking rewards inside a regulated ETF may set a precedent for future crypto exchange-traded products.

• VAVX proposed for Nasdaq listing
• Supports crypto ETF yield without triggering complex tax issues

Will you consider adding VAVX to benefit from AVAX’s staking rewards?

• Evaluate your portfolio’s crypto exposure and yield needs
• Monitor SEC approval status of VAVX ETF
• Compare staking fees and reward structures across ETFs
• Assess custodian security standards
• Stay informed on regulatory developments affecting crypto ETFs

VanEck’s Avalanche ETF filing represents a significant innovation by combining AVAX price exposure with staking yield inside a regulated investment vehicle. This offers investors both growth and income potential, backed by institutional-grade custody and transparent fund management. As crypto ETFs evolve, VAVX could lead the way in integrating staking rewards for retail and institutional investors alike.

• How likely are you to invest in an ETF that generates staking income on crypto holdings?
• Very likely
• Somewhat likely
• Neutral
• Unlikely
• Not at all

• VanEck’s Avalanche ETF VAVX integrates staking rewards for income
• Staking up to 70% of AVAX tokens with Coinbase’s crypto services
• Secure custody via Anchorage Digital and Coinbase Custody cold wallets
• ETF uses no leverage; tracks MarketVector Avalanche Benchmark Rate
• Potential SEC approval to list on Nasdaq boosts investor options