VanEck’s Avalanche ETF Filing Includes Staking Rewards for Investors
- VanEck has amended its S-1 filing for the Avalanche ETF, VAVX, to incorporate staking rewards.
- The fund may stake up to 70% of its AVAX holdings through Coinbase Crypto Services.
- Any staking rewards will be subject to a 4% service fee from Coinbase before accruing to the fund.
- AVAX will be stored with regulated custodians like Anchorage Digital and Coinbase Custody in cold wallets.
- The ETF will track AVAX’s price via the MarketVector Avalanche Benchmark Rate if approved for trading on Nasdaq.
This updated filing marks a significant step in integrating yield generation into cryptocurrency investment products, allowing investors to benefit from Avalanche staking rewards while minimizing risks associated with leverage or derivatives.
If approved, the VAVX ETF could provide investors with a unique opportunity to earn income through staking, reflecting a growing trend in crypto-focused investment vehicles.(Source)
