Bitwise has updated its filing with the Securities and Exchange Commission (SEC) to launch its Avalanche ETF, becoming the first issuer to officially propose yield generation through staking mechanisms. According to the regulatory document recently submitted by the fund manager, this innovative strategy seeks to offer significant added value to traditional institutional investors seeking exposure to the asset.
The fund, which will operate under the ticker BAVA, sets a sponsor fee of 0.34%, positioning itself as one of the most economical options in the current market against direct competitors. Furthermore, the firm plans to allocate up to 70% of its AVAX holdings for staking activities, generating additional rewards on the network. Bitwise is also offering a full fee waiver for the first month on the initial 500 million dollars in assets under management.
How will the inclusion of staking rewards impact institutional competition?
This proposal emerges following new IRS guidelines, which have cleared the tax path for yield-generating crypto products in the United States without immediate tax complications. Unlike competitors such as VanEck or Grayscale, whose fees are 0.40% and 0.50% respectively, Bitwise seeks to differentiate itself aggressively through reduced costs and real asset utility. The integration of a liquidity reserve and reinforced custody with Coinbase adds crucial security layers for the fund.
The approval of this product could redefine investment standards in blockchain technology, forcing other managers to incorporate staking mechanisms to remain competitive in this evolving sector. If the regulator gives the green light, BAVA would trade on NYSE Arca, while its rivals target NASDAQ, creating an interesting dynamic of liquidity and access for large capital. On the other hand, retaining 12% of the generated yields ensures the operational sustainability of the proposed financial model.
Bitwise’s bold move places the asset in a privileged position ahead of a potential regulatory approval expected during the first quarter of the year 2026. Investors are now watching closely to see if the SEC will finally validate this hybrid model of investment and passive yield in cryptocurrencies. Thus, the success of this initiative could open the doors to a new era of more sophisticated crypto financial products.
