Avalanche ETF VAVX: VanEck Launches First AVAX Fund with Staking in the United States
📋 Key Takeaways (TL;DR)
- VanEck launches VAVX, the first spot Avalanche ETF in the United States, listed on Nasdaq since January 26, 2026
- Management fees: 0% up to $500 million in assets, then 0.2%
- World first: the ETF includes staking, with rewards distributed to shareholders
- Custody provided by Anchorage Digital and Coinbase, with State Street as administrator
- Grayscale and Bitwise are preparing their own AVAX ETFs to compete with VanEck
Asset manager VanEck has just made history in crypto ETFs. On January 26, 2026, its VAVX fund became the first spot Avalanche ETF to be listed on a U.S. exchange. This development opens the door to traditional investors who want exposure to AVAX without managing their own cryptocurrencies. But that’s not all: the ETF also integrates staking, a first for this type of product in the United States.
VanEck VAVX: Details of the First American Avalanche ETF
The VAVX ETF is now available on Nasdaq. It allows investors to purchase shares representing actual AVAX tokens, without needing a crypto wallet. Unlike futures-based ETFs, this “spot” ETF directly holds the underlying assets.
The management fees are particularly attractive. VanEck has decided to waive all fees up to $500 million in assets under management, or until February 28, 2026. After that, the rate will rise to 0.2% per year. This is one of the lowest fees on the market for a crypto ETF.
Custody of AVAX tokens is entrusted to Anchorage Digital Bank as primary custodian. Coinbase Custody Trust Company serves as secondary custodian. State Street Bank handles administration, transfers, and treasury for the fund. Flow Traders acts as market maker to ensure trading liquidity.
To better understand how crypto ETFs work, check out our complete guide on Bitcoin ETFs.
Integrated Staking: A First for a U.S. ETF
The major innovation of VAVX lies in its staking mechanism. A portion of the AVAX tokens held by the fund is staked on the Avalanche network. This operation generates rewards that are directly distributed to ETF shareholders.
Coinbase Crypto Services provides the staking service. The service charges a 4% commission on generated rewards. The remainder is integrated into the fund’s net asset value (NAV). This means each share’s value automatically increases through staking returns.
However, staking carries certain risks. Staked tokens are locked during activation and withdrawal periods. In case of high volatility or massive redemption requests, the fund could have difficulty quickly liquidating these assets. Additionally, if validators encounter technical issues, rewards could be reduced or even zero.
Avalanche: The Blockchain Attracting Institutions
Avalanche is a next-generation blockchain, known for its speed and flexibility. It confirms transactions in less than a second, making it suitable for financial applications. Its architecture also allows the creation of “subnets,” customized blockchains for specific use cases.
The Avalanche ecosystem has attracted several major players from traditional finance. Franklin Templeton launched its tokenized money market fund BENJI on this blockchain. VanEck itself chose Avalanche for its tokenized U.S. Treasury fund, VBILL. Toyota Blockchain Lab has also deployed several chains for its automotive financing workflows.
The Avalanche9000 upgrade has further strengthened the network’s appeal. Over 500 Layer 1 blockchains are currently in development within the ecosystem. Sectors range from gaming to finance, including digital identity. The Granite upgrade, planned for Q1 2026, will bring cross-chain messaging and dynamic block times.
Competition Already Waiting in the Wings
VanEck benefits from a first-mover advantage, but competition is brewing. Grayscale plans to convert its existing Avalanche Trust into an ETF under the ticker GAVX. Bitwise has also filed an application for its BAVA ETF, with announced management fees of 0.34%.
At launch, the AVAX token was trading around $11.70. Analysts consider this level an important technical support zone. The VAVX fund started with approximately $2.49 million in assets under management.
This approval is part of a broader trend of regulatory openness. As explained in our article on Goldman Sachs and institutional adoption, major banks now view regulation as a catalyst for adoption rather than a hindrance.
What This Means for Investors
The VAVX ETF offers a new way to invest in the Avalanche ecosystem. Investors can now purchase shares through their regular broker. They benefit from tax advantages specific to ETFs and the security of a regulated structure.
Integrated staking represents a bonus compared to simply holding AVAX. However, investors should keep in mind the associated risks: volatility of the underlying token, staking risks, and management fees after the promotional period.
The launch of this ETF also confirms the growing appetite of institutions for altcoins. After Bitcoin and Ethereum ETFs, Avalanche becomes the third ecosystem to benefit from such a product in the United States. This diversification of offerings could herald the arrival of other ETFs on alternative cryptocurrencies in the coming months.
📚 Glossary
- Staking: the process of locking up cryptocurrencies to participate in transaction validation on a Proof of Stake blockchain. In return, the “staker” receives rewards.
- Wallet: an application or device for storing, sending, and receiving cryptocurrencies. It contains the private keys needed to access funds.
- Validator: a network participant who verifies and confirms transactions on a Proof of Stake blockchain. Validators are rewarded for their work.
- Blockchain: distributed ledger technology where transactions are recorded in cryptographically linked blocks. It enables secure exchanges without intermediaries.
- ETF (Exchange-Traded Fund): an exchange-traded investment fund that replicates the performance of an asset or basket of assets. It allows easy investment through a standard brokerage account.
- Custody: secure storage service for digital assets by a trusted third party. Institutional custodians offer enhanced security guarantees.
❓ Frequently Asked Questions
What is the VanEck Avalanche ETF (VAVX)?
It is the first U.S. ETF allowing direct investment in Avalanche’s AVAX token. It is listed on Nasdaq under the symbol VAVX and includes staking rewards. Learn more: What is a crypto ETF
What are the VAVX ETF fees?
Fees are 0% up to $500 million in assets under management or until February 28, 2026. After that, they will rise to 0.2% per year. Staking charges a 4% commission on generated rewards.
How does staking work in the VAVX ETF?
A portion of the fund’s AVAX tokens is staked via Coinbase Crypto Services. Generated rewards are integrated into the fund’s value, automatically increasing each share’s price.
What are the risks of this ETF?
Main risks include AVAX token volatility, temporary locking of staked tokens, and potential technical issues with validators. Learn more: Crypto risks
Where can I buy the VAVX ETF?
The VAVX ETF is available on Nasdaq. Investors can buy it through their regular broker, like any listed stock. It is currently not available in Europe.
Will there be other Avalanche ETFs?
Yes, Grayscale and Bitwise have filed applications with the SEC to launch their own Avalanche ETFs. Grayscale plans the ticker GAVX and Bitwise the ticker BAVA.
📚 Sources
This article is based on the following sources:
- Business Wire – Official VanEck press release on VAVX launch
- Yahoo Finance – Analysis of the first American Avalanche ETF
- CoinGape – Details on ETF fees and staking
- Crypto Valley Journal – Launch of the first spot Avalanche ETF
- The Street – Avalanche ETF debut on Wall Street
- Avalanche Network – Official Avalanche documentation
How to cite this article:
Fibo Crypto. (2026). Avalanche ETF VAVX: VanEck Launches First AVAX Fund with Staking in the United States. Retrieved [date] from https://fibo-crypto.fr/en/blog/avalanche-etf-vavx-vaneck-staking
