1 hour ago
14
Spot crypto ETFs with staking built in are no longer a Bitcoin-only conversation. Bitwise, VanEck, and Grayscale have each launched US-listed Avalanche funds that put a meaningful chunk of their AVAX holdings to work earning yield, a structural feature that sets these products apart from the first generation of spot crypto ETFs.
The three funds, trading under the tickers BAVA, VAVX, and GAVA respectively, have staked a portion of their holdings. Each fund targets staking up to approximately 70% of its holdings, keeping the remainder liquid to handle redemptions. The gross annualized staking yield on Avalanche has been running around 5.4%, based on mid-2026 network metrics. After custodians and staking providers take their cut, the net reward flows back to investors and gets reflected in the fund’s net asset value.
Grayscale’s GAVA had approximately 81% of its AVAX staked by late August 2026, running slightly above the stated 70% target. Bitwise’s BAVA reported holdings of around 2.54 million AVAX as of June 30, 2026. Grayscale’s GAVA held approximately 650,000 AVAX in its own disclosures. VanEck’s VAVX was the earliest to market and has been accumulating since January 2026.
Custody arrangements vary slightly across the three products. Coinbase Custody handles safekeeping for at least some of the funds, while others manage staking operations through in-house infrastructure. Management fees sit in the range of roughly 0.20% to 0.50%, competitive with other spot crypto products currently on the market.
A staged rollout, not a single announcement
These products did not land simultaneously. VanEck introduced VAVX first, in January 2026, followed by Grayscale’s GAVA in March and Bitwise’s BAVA in April. Each filing came with S-1 amendments that progressively layered in staking disclosures as the regulatory picture clarified.
What this means for investors and the competitive landscape
A traditional spot crypto ETF gives investors price exposure and nothing else. A staking-enabled fund at the approximately 5.4% gross yield generates a return on top of price performance, or as a partial cushion if price moves against the position. That is a meaningful feature for institutional allocators who face internal hurdles around holding non-yielding assets.
With three large asset managers offering near-identical exposure to the same underlying asset, fee pressure is the most obvious battleground. Expense ratios in the 0.20% to 0.50% range leave some room to compress further as AUM grows.
Current AUM across the three funds remains modest, which is partly a function of AVAX’s price trend during the first half of 2026 being uninspiring.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·