VanEck updated the filing for Avalanche exchange traded fund VAVX to include staking rewards and generate income for investors.
In an amended S-1 filed with the U.S. Securities and Exchange Commission, the company disclosed that the fund may stake up to 70% of its AVAX holdings to generate yield, with Coinbase Crypto Services listed as the initial staking provider.
Fees, less a 4% service fee from Coinbase, accrue to the Fund and are reflected in the ETF’s net asset value.
Under the plan, AVAX will be hosted by regulated custodians including Anchorage Digital and Coinbase Custody. Both institutions will store the tokens offline in cold wallets.
The fund uses no leverage or derivatives and tracks the price of AVAX through MarketVector Avalanche Benchmark Rate, a custom index constructed from major exchanges.
If approved, the fund will trade on the Nasdaq market under the ticker VAVX. Last month, Bitwise updated its Spot Avalanche ETF filing with the SEC to also allow for yield generation.
Read more: US opens way for crypto ETPs to earn yield without triggering tax issues
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
