The Avalanche network offers average staking rewards of around 5.4%, which Bitwise said it intends to capture while keeping the fund liquid.
Avalanche Token News
Bitwise Asset Management listed a new exchange-traded fund tied to AVAX on Wednesday. The fund trades on U.S. markets under the ticker symbol BAVA. Bitwise currently manages $11 billion in assets across its crypto investment products.
The firm said it will stake the AVAX held inside the fund. Bitwise will handle that process through its in-house unit, Bitwise Onchain Solutions. The Avalanche network offers average staking rewards of around 5.4%, which Bitwise said it intends to capture while keeping the fund liquid.
Bitwise CIO Matt Hougan described Avalanche as an emerging platform for business and government applications. He said the network's design allows developers to build custom, interoperable blockchains without giving up the security of a larger system. Hougan said that combination makes it well-suited for enterprise use cases being built on-chain.
Avalanche has already attracted institutional users outside of crypto. FIFA, Toyota, and the state of Wyoming have each used the network, with Wyoming deploying it to issue a state stablecoin. Bitwise cited those examples as evidence of real-world adoption.
Grayscale and VanEck have previously launched their own AVAX exchange-traded funds. The BAVA listing adds Bitwise to that group as the altcoin ETF market continues to expand. Last week, Canary Capital filed to list an ETF offering exposure to the $PEPE meme coin, the latest in a growing line of altcoin fund applications.
Bloomberg ETF analyst James Seyffart tracked BAVA's opening session on Wednesday. He noted that the fund recorded $400,000 in trading volume within its first 90 minutes of listing. Seyffart described that figure as "pretty damn good" for a new fund launch.
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