Bitwise Asset Management has filed for a staking Avalanche (AVAX) ETF, with expectations for trading to commence on NYSE Arca by the first quarter of 2026.
This ETF is designed to potentially stabilize AVAX prices by reducing its liquid supply, fostering increased institutional interest, and providing a yield opportunity for investors.
The proposed ETF, which includes a staking feature, is anticipated to receive approval by late 2025 or early 2026.
Inaugural Staking Feature and Competitive Fees
Bitwise Asset Management's filing introduces a staking Avalanche (AVAX) ETF, with trading expected to begin in early 2026. This ETF pioneers a staking feature in the U.S. crypto ETF market, allowing for the staking of up to 70% of AVAX holdings and offering significant yield opportunities.
The initiative, spearheaded by Bitwise, focuses on staking AVAX and aims to attract institutional investors with a competitive annual fee of 0.34%. This move represents a novel approach to crypto-backed investment products in the United States.
Impact on AVAX Liquidity and Investor Attraction
The filing could have a notable impact on AVAX liquidity, as a substantial portion of the cryptocurrency may be locked for staking purposes. This reduction in available supply has the potential to support AVAX price levels. The ETF's staking feature introduces a strategic element that complements traditional market dynamics.
Institutional financiers may find the staking aspect particularly appealing, which could enhance overall investor attraction to AVAX. Historically, the precedent set by Bitcoin and Ethereum ETFs suggests that such products often lead to increased institutional inflows, which typically benefit the respective cryptocurrency markets.
Market Dynamics and Potential Price Action
AVAX prices have experienced rapid shifts in recent months, influenced by broader market conditions. The introduction of an ETF that includes staking capabilities could contribute to bolstered price action and increased stability for AVAX.
Historical trends observed during ETF approvals indicate a potential for positive price action for AVAX. The unique staking feature is expected to create new avenues for demand for Layer 1 tokens, with the possibility of gains mirroring those seen in established ETF histories.
"The introduction of staking ETFs marks a new chapter for institutional engagement with Layer 1 assets."