VanEck's Bold Move: Staking Rewards in Avalanche ETF

VanEck has made a significant update to its Avalanche ETF filing. The new plan includes staking rewards, aiming to boost investor income. Up to 70% of the ETF's AVAX holdings could be staked. This move is set to generate extra yield for investors.

Partnership and Fees

The fund will partner with Coinbase Crypto Services for staking. However, there's a catch: a 4% service fee. Despite this, rewards will still add value to the ETF's net asset value. Investors stand to gain from this strategy.

Security Measures

Security is a top priority. The AVAX tokens will be safely stored with regulated custodians like Anchorage Digital and Coinbase Custody. These providers use cold wallets, keeping tokens offline and secure.

Tracking and Simplicity

The ETF will track AVAX's price using a custom index. This index is built from data of major exchanges. The fund won't use leverage or derivatives, keeping things simple and straightforward.

Approval and Trading

If approved, the ETF will trade under the ticker VAVX on Nasdaq. This could open new opportunities for investors looking to gain exposure to Avalanche. Bitwise also updated its Avalanche ETF filing, aiming for similar yield generation.