VanEck Launches New Avalanche ETF Plan: Introducing Staking Yields for Investors

VanEck is upgrading its Avalanche ETF application plan by incorporating staking functionality into the product design, aiming to generate additional returns for investors through staking AVAX assets. According to the latest revised Form S-1 submitted to the U.S. Securities and Exchange Commission (SEC), this fund, named VAVX, plans to stake 70% of its held AVAX to generate passive income.

Currently, AVAX’s trading price is approximately $9.86, holding an important position in blockchain investments. VanEck’s move aims to enable ordinary investors to participate in the staking economy and earn yields through a fund structure, representing a new trend in the cryptocurrency asset investment field.

Detailed Design of the Staking Operation Mechanism

The fund will establish a partnership with Coinbase Crypto Services, which will provide staking technology support. It is important to note that all staking earnings, after deducting a 4% service fee, will be accumulated into the fund account and ultimately reflected in the ETF’s net asset value per share. This design ensures that investors can automatically enjoy staking yields without additional operations.

This structured yield distribution scheme eliminates the complexity of manual management and transfers typically associated with traditional staking. The earnings will be periodically incorporated into the fund’s assets, allowing investors to receive passive income from day one of holding, which is attractive to institutional and individual investors seeking stable cash flow.

Secure Storage and Custody System

To ensure asset security, AVAX tokens will be held by two regulated and compliant custody service providers, Anchorage Digital and Coinbase Custody. Both institutions use offline cold wallet storage technology, which is widely recognized as the safest method for asset storage in the industry.

Additionally, the fund explicitly commits not to use leverage trading or derivatives tools, and will directly track AVAX price performance. Price tracking will be conducted through the MarketVector Avalanche Benchmark Rate, a professional index compiled from data from major exchanges, offering high market representativeness. Once approved, VAVX will be listed on the Nasdaq exchange, with the ticker symbol VAVX.

Industry Competition Heating Up

VanEck’s move is not isolated. Bitwise has recently updated its Avalanche spot ETF application, also adding staking yield features. This indicates that mainstream asset management firms have recognized that incorporating staking yields into crypto ETF products has become an important competitive factor to attract investors.

This “staking ETF race” reflects the maturation of the crypto asset market—investors are no longer satisfied with mere price exposure but expect cash flows similar to traditional fixed-income products. The initiatives by VanEck and Bitwise suggest that future crypto fund products will place greater emphasis on yield generation capabilities, with staking being a key mechanism to achieve this goal.