VanEck has updated its filing for an Avalanche exchange traded fund called VAVX. The goal of this update is to allow the fund to earn extra income through staking. This income would come from staking Avalanche tokens also known as AVAX. If approved this fund would give investors a new way to gain exposure to Avalanche while also earning rewards over time.
In the updated filing sent to the United States Securities and Exchange Commission VanEck explained that the fund may stake up to seventy percent of its AVAX holdings. Staking is a process where tokens are locked to help support the network. In return the network pays rewards. These rewards would belong to the fund and would increase the value of each share over time.
Coinbase Crypto Services is listed as the first staking provider for the fund. Coinbase would handle the technical work needed for staking the tokens. For this service Coinbase would charge a fee of four percent of the rewards earned. After this fee the remaining rewards would go back into the fund. These rewards would be included in the daily value of the fund which is known as the net asset value.
The AVAX tokens held by the fund would be stored with regulated custodians. These include Anchorage Digital and Coinbase Custody. Both firms are known for keeping digital assets in cold storage. Cold storage means the tokens are kept offline which helps reduce the risk of theft or loss. This setup is meant to give investors more confidence in how the assets are handled.
VanEck also made it clear that the fund will not use leverage or complex trading tools. It will not use derivatives or borrowed funds. The fund will simply hold AVAX and may stake a portion of it. This simple structure is designed to closely follow the price of Avalanche without added risk.
To track the price of AVAX the fund will use a custom index called the MarketVector Avalanche Benchmark Rate. This index is built to reflect the fair market price of Avalanche based on data from large and active trading venues. The index is used only as a price reference and does not involve trading activity by the fund itself.
If the Securities and Exchange Commission approves the filing the fund would trade on the Nasdaq stock exchange. It would use the ticker symbol VAVX. Investors would be able to buy and sell shares of the fund just like any other stock during market hours.
This move shows growing interest in crypto funds that offer more than price exposure. By adding staking VanEck aims to provide a steady source of income while holding a long term position in Avalanche. It also reflects a broader trend where asset managers are looking for ways to combine traditional investment products with features from blockchain networks.
The update does not change the core purpose of the fund. It still focuses on tracking the price of Avalanche in a clear and direct way. The addition of staking simply adds another layer of potential value for investors who believe in the future of the network and want a passive way to take part in it.
If approved VAVX could become one of the first Avalanche focused funds to include staking rewards in its structure. This would mark another step in the gradual connection between digital assets and traditional financial markets. #Write2Earn
