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