Bitwise Launches Avalanche ETF with BAVA Ticker and 0.34% Fee

TLDR

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The ETF will trade under the ticker BAVA on NYSE Arca.
The management fee is 0.34% per year, waived for the first $500M in assets.
Coinbase Custody will secure the Trust’s Avalanche holdings.
The ETF will stake Avalanche to generate additional digital assets.

Bitwise Investment Advisers is gearing up to launch its Avalanche ETF, offering investors exposure to the Avalanche (AVAX) digital asset through traditional brokerage accounts. Trading under the ticker “BAVA” on NYSE Arca, the ETF aims to track the value of Avalanche and generate additional AVAX through staking. With Coinbase Custody securing the assets and a waived management fee for the first $500 million, Bitwise is entering the crypto ETF space with a strategic offering.

Avalanche ETF to Begin Trading Under Ticker BAVA

Bitwise Investment Advisers has announced the upcoming launch of the Bitwise Avalanche ETF. The fund is expected to list on NYSE Arca with the ticker symbol “BAVA.” The ETF is structured as a trust and aims to provide investors access to the value of Avalanche (AVAX) held by the fund.

The ETF’s primary goal is to reflect the price of Avalanche, based on the CME CF Avalanche–Dollar Reference Rate – New York Variant. This benchmark is calculated by CF Benchmarks Ltd. using trade data from several leading Avalanche trading platforms.

The Trust will issue shares in blocks of 10,000, known as “Baskets.” Only Authorized Participants can create or redeem these Baskets directly with the Trust. Shares may be bought or sold by investors on the Exchange during the trading day, possibly at prices above or below the net asset value (NAV)

Management Fee and Temporary Waiver

The Trust will charge a 0.34% annual management fee on its Avalanche holdings. However, Bitwise has announced a promotional waiver. For one month after trading begins, the fee will be waived on the first $500 million of the Trust’s assets.

This fee covers all ordinary operational expenses of the Trust. Investors will also incur transaction fees when creating or redeeming Baskets. The Administrator will calculate the necessary amount of Avalanche or cash required to create a Basket based on the current NAV.

Custody and Staking Strategy

Coinbase Custody Trust Company, LLC has been appointed as the custodian for the ETF’s Avalanche assets. The firm will manage the Trust’s digital assets in segregated, secure accounts under a formal custody agreement.

In addition to holding Avalanche, the ETF will seek to earn more Avalanche by staking. Bitwise will appoint third-party staking agents to operate validators. These agents will stake a portion of the ETF’s Avalanche holdings to help validate transactions on the Avalanche blockchain and generate rewards.

This staking process does not involve lending or leverage. The Trust will retain ownership of the staked assets and will receive rewards directly from the network.

Structure and Investor Access

The Bitwise Avalanche ETF offers a regulated way to invest in Avalanche through a traditional brokerage account. Investors will not need to set up a wallet or manage private keys. The Trust does not use derivatives and holds Avalanche directly, making it different from funds that rely on futures or swaps.

According to Bitwise, this structure allows easier access to Avalanche without the technical complexity of direct asset ownership. The ETF is expected to attract institutional and retail investors seeking digital asset exposure in a regulated format.

Avalanche operates on a proof-of-stake network. It enables smart contracts and supports decentralized applications. Transactions are validated by a network of nodes, and rewards are distributed to validators who stake Avalanche.

Regulatory Status and Reporting

The Trust is classified as an “emerging growth company” under the JOBS Act. This status allows it to adopt reduced reporting requirements for a limited time. For instance, it does not need to provide auditor attestations under Section 404(b) of the Sarbanes-Oxley Act.

However, the Trust has opted out of the extended transition period for complying with new accounting standards. This means it will adopt new standards on the same timeline as non-emerging growth companies.

The emerging growth status will expire after five years or earlier if certain financial thresholds are met.