AVAX investors just received one of the strongest signals yet that institutional demand for the Avalanche ecosystem is accelerating.
- Bitwise’s updated filing finalizes structure for a spot Avalanche ETF that will trade under BAVA on NYSE Arca.
- The ETF includes staking rewards and a 0.34% management fee — fully waived at launch to accelerate inflows.
- AVAX jumped after the filing as competition to launch the first Avalanche ETF intensifies among major issuers.
After weeks of speculation, Bitwise has moved its spot Avalanche ETF one step closer to the market by submitting a newly updated filing to U.S. regulators — a sign that the issuer is now in launch-mode.
Bitwise Pushes Forward With Its Avalanche ETF
The asset manager updated its S-1 registration with the SEC this week, locking in the core economic structure of the product: management costs, ticker symbol, custody framework, and staking participation. The fund will trade under the ticker BAVA on NYSE Arca once approved.
Bitwise is aiming for aggressive early accessibility. The management fee is set at 0.34%, but investors won’t be charged initially — the firm plans to waive the entire fee during the first month of trading or until the product gathers $500 million in assets, whichever happens first.
That approach reflects Bitwise’s current strategy in altcoin ETFs: scale early, then monetize.
A Staking-Enabled ETF — Not Just AVAX Price Exposure
Unlike Bitcoin ETFs that only track spot price, the Avalanche fund carries another source of value: staking rewards. The ETF will participate in Avalanche staking and distribute the economic benefit to the fund, giving institutional investors access to yield that is normally earned only at the token level.
The pricing benchmark for NAV will be the CME CF Avalanche-Dollar Reference Rate, ensuring the ETF follows the institutional rate rather than retail exchange volatility.
Custody will be split:
- Avalanche tokens held by Coinbase Custody Trust Company
- Cash held by BNY Mellon
To activate the fund on day one, Bitwise Investment Manager will supply the seed capital by purchasing 100,000 shares worth $2.5 million at launch.
Context: Avalanche ETFs Are Becoming a Race
Bitwise isn’t alone — VanEck and Grayscale also filed Avalanche ETF proposals in September. DTCC has already listed the Avalanche ETF on its clearing eligibility roster, a move that typically occurs only when listing preparations have begun behind the scenes.
The market took notice. AVAX saw a sharp jump of more than 7% following the filing update, extending gains from the broader crypto rebound.
The momentum comes in the same week Bitwise launched two new spot ETFs tracking XRP and Dogecoin, both of which generated outsized hype within the altcoin market.
Avalanche appears to be next in line.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/avalanche-etf-nears-approval-as-bitwise-updates-filing/