Key Insights:
- AVAX price rose over 6% despite market uncertainty.
- VanEck filed an S-1 amendment for Avalanche ETF.
- It revealed a management fee of 0.30% and Coinbase Crypto Services as staking provider.
AVAX price rose over 6% as VanEck advanced toward launching its Avalanche ETF in the United States.
VanEck filed an S-1 amendment with the U.S. Securities and Exchange Commission (SEC), disclosing management fees, the staking provider, and other key details.
VanEck Updates Avalanche ETF Filing with US SEC
VanEck submitted a third amendment to its S-1 form for the proposed spot Avalanche ETF, according to a filing with the US SEC.
The latest filing lists a management fee of 0.30%, with no fee waiver announced. By comparison, Bitwise set a 0.34% fee and waived it for one month or until assets under management reach $500 million.
The issuer has named Coinbase Crypto Services as the staking provider. The VanEck Avalanche ETF will generate rewards by staking a portion of the trust’s AVAX.
The staking provider will regularly credit staking rewards after deducting any applicable compensation, including the custodian staking facilitation fee.
Coinbase Crypto Services will deduct 4% from staking rewards under the ‘staking provider consideration’ agreement. The custodian staking facilitation fee is currently zero.
Benqi Finance (sAVAX), Hypha (STAVAX), and Yield Yak (yyAVAX) will provide liquid staking solutions.
Other Details of VanEck Avalanche (AVAX) ETF
If approved, the Avalanche ETF will list and trade on Nasdaq under the ticker symbol VAVX. VanEck is awaiting SEC approval under the generic listing guidelines.
The investment objective is to reflect AVAX price performance and rewards from staking a portion of the trust’s AVAX assets. The ETF will track AVAX price using the MarketVector Avalanche Benchmark Rate price index.
Anchorage Digital Bank will serve as primary custodian, with Coinbase Custody Trust Company as secondary custodian for the trust.
State Street Bank and Trust Co. will act as cash custodian, administrator, and transfer agent. Van Eck Securities Corporation will serve as the marketing agent.
The firm is seeking regulatory approval from the SEC to launch the ETF.
AVAX Price Spikes More Than 6%
AVAX price surged over 6% in the past 24 hours, following a 12% decline over the previous week. At the time of writing, it was trading at $11.99.
The 24-hour low and high were $11.28 and $12.28, respectively. Trading volume increased by nearly 38% in the past 24 hours, indicating a rise in interest among traders.
Recently, crypto analyst Ali Martinez set a price target of $9.40. He claimed a breakout below a right-angled ascending broadening wedge in a 1-day chart confirmed the fall.
The derivatives market saw buying in the last few hours, as per CoinGlass data. At the time of writing, the total Avalanche futures open interest was up more than 1.50% to $471.05 in the last 24 hours.
The 4-hour AVAX futures open interest was up more than 2%. Notably, 4-hour futures OI on Binance, OKX, and Bybit climbed by more than 0.30%, 0.51%, and 2%, respectively.