VanEck has taken another step toward launching a spot Avalanche ETF in the United States, filing a third amended S-1 registration statement with the U.S. Securities and Exchange Commission.
The updated filing refines the product’s structure, introducing a staking component and setting a competitive fee as the firm positions itself ahead of a potential approval.
If cleared, the fund is expected to trade on the Nasdaq under the proposed ticker VAVX.
Staking Built Directly Into the ETF Structure
The most notable change in the amended filing is the inclusion of staking functionality. According to the document, the ETF would be permitted to stake up to 70% of its Avalanche (AVAX) holdings, generating yield on behalf of investors.
Staking operations would be handled by Coinbase Crypto Services, introducing an income-generating element that sets the product apart from traditional spot crypto ETFs. Most existing spot ETFs are designed to track price movements only, without engaging in on-chain activity.
This structure effectively blends spot exposure with protocol-level participation, creating a different risk and return profile compared with pure spot products.
Fee Strategy Targets Long-Term Competitiveness
VanEck has set the ETF’s management fee at 0.30%, a level intended to remain competitive without relying on short-term promotional incentives. Some rival issuers have leaned on temporary fee waivers to attract early inflows, but VanEck’s approach suggests a focus on sustainable pricing from launch.
The fee positioning places the proposed Avalanche ETF among the lower-cost options in the digital asset ETF landscape, especially given the added complexity of staking integration.
Regulatory Process Moves Closer to Decision
The ETF remains in the pending approval stage with the SEC. While the filing does not guarantee approval, submitting a third amendment typically signals ongoing dialogue with regulators and incremental progress toward meeting disclosure and structural requirements.
By refining operational details around staking, custody, and fees, VanEck appears to be addressing potential regulatory concerns proactively rather than waiting for formal feedback.
Why the Filing Matters
The proposed Avalanche ETF highlights how issuers are beginning to differentiate beyond simple price tracking. By combining spot exposure with staking yield, VanEck is testing whether U.S. regulators are open to more functional crypto ETF designs.
If approved, VAVX would represent a shift in how digital asset ETFs are structured, potentially opening the door for similar staking-enabled products tied to other proof-of-stake networks. For now, the market’s focus remains on whether regulators are willing to sign off on that next step.
