VanEck has disclosed new details around its proposed Avalanche (AVAX) exchange traded fund, outlining the fee structure, staking model, and key operational partners in amended filings submitted to U.S. regulators this week. The update comes as competition intensifies among issuers racing to bring AVAX-based investment products to the U.S. market.
Fee Structure and Staking Model
According to the disclosure, the proposed ETF will carry a 0.30 percent management fee. While this level is lower than that of several comparable crypto funds, the filing does not include a temporary fee waiver during the initial trading period. This contrasts with a competing Avalanche ETF proposal from Bitwise, which applies the same management fee but includes a temporary waiver, underscoring growing pressure among issuers to differentiate their offerings.
The amended filing names Coinbase (NASDAQ: COIN) Crypto Services as the staking provider. Under the proposed structure, Coinbase will retain four percent of staking rewards as compensation. The custodian staking facilitation fee is set at zero, consistent with prior disclosures submitted to the U.S. Securities and Exchange Commission.
The ETF structure enables liquid staking through Benqi Finance, Hypha, and Yield Yak. This approach allows the fund to actively manage staked AVAX while maintaining exposure to the underlying asset within an ETF framework. The issuer emphasized that this structure is designed to balance yield generation with liquidity and operational flexibility.
Custody and Operational Partners
Asset custody and safekeeping will be handled by Anchorage Digital Bank and Coinbase Custody, which will serve in various trustee and custodial roles, as detailed in the regulatory filings.
The amended prospectus also outlines the broader operational framework of the trust. State Street Bank is designated to act as cash custodian, administrator, and transfer agent, while VanEck Securities will serve as the distributor of the proposed ETF.
Market Context
The regulatory update comes amid renewed momentum in the Avalanche market. AVAX prices rose by more than five percent in a single trading session this week, supported by higher spot volumes and increasing futures open interest, signaling renewed buying activity in derivatives markets.
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