The first U.S. exchange-traded fund (ETF) for Avalanche could be a groundbreaking one. Bitwise has filed an update with the SEC that not only moves the fund closer to approval but also makes it immediately unique.
The firm aims to create an Avalanche ETF that not only offers price exposure but also generates actual yield through staking—a feature no other provider has dared to include so far.
Crypto Asset Manager Bitwise Proposes Staking-Enabled Avalanche ETF #
Bitwise has assigned the fund a new ticker, BAVA, and is opting for a notably low fee of 0.34 percent. This undercuts its largest competitors: VanEck is proposing a 0.40 percent fee for its product, while Grayscale’s stands at 0.50 percent.
The real difference, however, lies in how Bitwise intends for the fund to operate. The plan is to stake up to 70 percent of the AVAX tokens held in the fund on Avalanche’s proof-of-stake network.
These staking rewards will be largely passed on to investors, though Bitwise will retain 12 percent of the generated yield to cover operational costs.
Because the other ETF proposals do not incorporate staking, they only have the standard management fees. With this approach, Bitwise is trying to differentiate itself, giving investors the opportunity to gain both AVAX exposure and staking rewards.
This strategy targets investors seeking extra returns on top of price exposure without having to manage the staking process themselves. To make the launch even more attractive, Bitwise will waive fees on inflows up to €430 million for the first month.
Race for Avalanche ETFs Begins #
The update comes at a time when U.S. regulations are slowly opening up for crypto products that generate yield.
The IRS, the U.S. tax authority, recently issued new guidelines that permit staking within an ETF without creating tax complications for investors.
If the SEC gives the green light, BAVA will be traded on NYSE Arca. The Avalanche ETF proposals from VanEck and Grayscale are slated to list on the Nasdaq.
All three are hoping for approval in the first quarter of 2026, officially kicking off the race to launch the first AVAX ETF.