VanEck Plans Avalanche ETF To Include Staking Rewards And Increase Investor Yield

TLDR

Table of Contents

VanEck’s Avalanche ETF plans to stake up to 70 percent of AVAX holdings.
Coinbase Crypto Services will provide staking with a 4 percent service fee.
Staking rewards accrue to the fund and are reflected in its net asset value.
ETF will trade on Nasdaq under ticker VAVX tracking AVAX via a custom index.

VanEck has updated its filing for a new Avalanche exchange-traded fund, aiming to provide investors with staking rewards. The ETF, if approved, could allow investors to earn income from up to 70% of AVAX holdings through staking. The fund plans to use Coinbase Crypto Services as its initial staking provider, with rewards accruing directly to the fund and reflected in its net asset value. The move is part of a broader trend of integrating yield-generating mechanisms into cryptocurrency ETFs.

ETF Structure and Staking Mechanism

VanEck’s filing with the U.S. Securities and Exchange Commission outlines the ETF’s plan to stake a portion of its AVAX holdings. The filing specifies that up to 70% of the fund’s AVAX could be staked to generate yield. Coinbase Crypto Services is listed as the initial provider, charging a 4% service fee on any staking rewards.

BREAKING: VanEck Files 3rd Amendment for Spot AVAX ETF
VanEck just submitted Amendment No. 3 to the SEC for their Avalanche ETF, This thing is getting Closer to Launch.
What We Know:
▪️ 0.30% management fee
▪️ Coinbase as staking provider (4% cut from rewards)
▪️ Ticker: $VAVX… pic.twitter.com/QpzO6JLfUX
— Crypto Patel (@CryptoPatel) December 21, 2025

Any staking income, after deducting the service fee, will be credited to the fund, increasing its net asset value. The ETF’s structure is designed to combine exposure to AVAX price movements with potential additional yield from staking activities. This allows investors to benefit from both capital appreciation and staking income without directly managing the technical requirements of staking.

Custody and Index Tracking

The ETF will hold AVAX with regulated custodians, including Anchorage Digital and Coinbase Custody. Both custodians will maintain the assets in cold wallets, providing offline storage for enhanced security. VanEck emphasized that the fund will not employ leverage or derivatives, reducing risk for investors.

The ETF will track AVAX’s price using the MarketVector Avalanche Benchmark Rate, a custom index derived from multiple major exchanges. This ensures the fund accurately reflects AVAX market performance while accounting for staking rewards. The combination of index tracking and staking yield aims to provide a comprehensive investment product for both retail and institutional participants.

Trading Plans and Market Context

If approved, the ETF would trade on Nasdaq under the ticker VAVX. VanEck joins a growing number of asset managers exploring ways to integrate yield generation into spot cryptocurrency funds. Bitwise recently updated its spot Avalanche ETF filing with the SEC to allow staking rewards, indicating a rising trend toward yield-focused digital asset products.

ETFs offering staking rewards may appeal to investors seeking both exposure to cryptocurrency price movements and additional income streams. The inclusion of staking in the ETF structure reduces the complexity of participating in staking programs individually, while providing regulated and secure access to these rewards.

Investor Benefits and Regulatory Considerations

The fund aims to simplify staking for retail and institutional investors by centralizing rewards within the fund. Investors would receive a combination of price appreciation and staking rewards without needing to manage individual wallets or validator nodes.

The SEC filing ensures compliance with regulatory standards for custody and fund management. By using regulated providers, VanEck seeks to maintain investor confidence while offering staking opportunities within a structured and transparent ETF framework. The fund represents a step toward integrating staking into traditional investment vehicles, and investors and market participants will be watching closely for SEC approval and market reception once VAVX launches.