VanEck has revised its filing for an Avalanche exchange-traded fund, VAVX, to incorporate staking rewards and generate income for investors.
In an updated S-1 submitted to the U.S. Securities and Exchange Commission, the company revealed that the fund may stake up to 70% of its AVAX assets to yield returns, with Coinbase Crypto Services as the initial staking provider.
Any rewards, after a 4% service fee from Coinbase, will benefit the fund and be reflected in the ETF’s net asset value.
Under the scheme, AVAX will be stored with regulated custodians, including Anchorage Digital and Coinbase Custody, which keep tokens offline in cold storage.
The fund will operate without leverage or derivatives, tracking AVAX’s price through the MarketVector Avalanche Benchmark Rate, a custom index built from major exchanges.
If approved, the fund will trade under the ticker VAVX on Nasdaq. Last month, Bitwise updated its spot Avalanche ETF filing with the SEC to allow for yield generation as well.
Read more: U.S. Clears Way for Crypto ETPs to Get Into Yield Without Triggering Tax Problems
