Avalanche ETF Set for Major Expansion: VanEck Incorporates Staking Revenue Stream

VanEck is making significant amendments to its Avalanche ETF (VAVX) submission, with a strategic focus on integrating staking capabilities into the fund structure. The proposed fund aims to put up to 70% of its AVAX holdings to work through staking mechanisms, generating additional yield for shareholders while AVAX currently trades at $14.01.

Staking Strategy and Revenue Model

The ETF will partner with a designated exchange’s digital asset services division to facilitate staking operations, with an agreed-upon service charge of 4% deducted from staking activities. This revenue arrangement ensures that all staking rewards accrued from the fund’s AVAX positions will flow directly into the fund itself, ultimately benefiting investors through enhanced net asset value growth.

Custody and Trading Infrastructure

For security and regulatory compliance, the fund’s assets will be custodied through multiple regulated providers, including Anchorage Digital alongside another major exchange’s institutional custody arm. Once approved, VAVX will debut on Nasdaq, employing a custom-designed index methodology to track Avalanche’s price performance and providing investors with direct exposure to AVAX movements.

The integration of staking rewards represents a meaningful shift in how crypto-focused ETFs can enhance returns while maintaining the institutional-grade custody safeguards that regulators demand.