VanEck has updated its filing for an Avalanche exchange-traded fund, VAVX, to include staking rewards and generate income for investors.
In an amended S-1 filed with the U.S. Securities and Exchange Commission, the company revealed that the fund can invest up to 70% of its AVAX holdings to generate yield, with Coinbase Crypto Services listed as an initial stake provider.
All rewards, minus Coinbase’s 4% service fee, would accrue to the fund and be reflected in the ETF’s net asset value.
Under the plan, AVAX will be held with regulated custodians, including Anchorage Digital and Coinbase Custody, both of which store the tokens offline in cold wallets.
The fund will not use leverage or derivatives and will track the price of AVAX via the MarketVector Avalanche Benchmark Rate, a custom index constructed from major exchanges.
If approved, the fund would trade under the symbol VAVX on Nasdaq. Bitwise updated its Avalanche ETF spot filing with the SEC last month to also enable yield generation.
Read more: US Paves Way for Crypto ETPs to Earn Yield Without Triggering Tax Issues
