TL;DR:
- Bitwise launched the Avalanche ETF (BAVA) on the NYSE, with plans to stake AVAX under custody through its Bitwise Onchain Solutions division.
- The fund charges a 0.34% fee, with a promotional 0% period during the first month on the first $500 million in assets.
- James Seyffart described the $400,000 in trading volume during the first 90 minutes as “pretty damn good.”
Bitwise Asset Management, the crypto asset manager with $11 billion under management, launched the Bitwise Avalanche ETF under the ticker BAVA on the New York Stock Exchange. The fund provides direct exposure to the AVAX token and incorporates an active staking feature, a characteristic that sets it apart from most altcoin ETFs currently available on the market.
To execute that strategy, the company will use its in-house division Bitwise Onchain Solutions, tasked with managing the staking of AVAX held in custody with the goal of preserving liquidity and maximizing participation in the network’s average rewards, which stand at 5.4% annually. The firm stated that this approach will allow it to generate additional returns without compromising the fund’s operability.
Matt Hougan, Chief Investment Officer at Bitwise, highlighted that Avalanche is one of the most relevant platforms for enterprise and government use cases. The network is already used by FIFA for its digital collectibles blockchain, by Wyoming to issue its state stablecoin —the first of its kind in the United States—, and by Toyota for initiatives related to supply chains and mobility. Institutions such as KKR, Apollo, and BlackRock have also developed tokenization projects on this infrastructure.
Bitwise Gets Ahead in the Altcoin ETF Race
The launch of BAVA comes amid a period of strong expansion in the crypto ETF market under the Trump administration. Grayscale and VanEck already have exchange-traded products based on AVAX, and last week Canary Capital filed a request with the SEC to list an ETF tied to the memecoin PEPE.
The initial reception of BAVA was positive. James Seyffart, Bloomberg’s ETF analyst, noted that the $400,000 in volume recorded during the first 90 minutes of trading represents a “pretty damn good” debut for a product of this type. The Bitwise fund’s fee was set at 0.34%, although during the first month it will be 0% on the first $500 million in assets, a common strategy to attract capital during the launch phase.