VanEck Pushes Staking-Enabled Avalanche ETF Closer To Market

VanEck is testing how far U.S. crypto ETFs can evolve. The firm has submitted a third revised S-1 filing for its proposed spot Avalanche ETF, refining the product in ways that go beyond simple price tracking.
If approved, the fund would trade on Nasdaq under the ticker VAVX.
The changes suggest VanEck is not just seeking approval, but trying to define a new ETF template.
A Spot ETF That Actively Uses The Network
Unlike existing spot crypto ETFs, the proposed fund would not sit idle on-chain. The updated filing allows the ETF to stake up to 70% of its AVAX holdings, introducing protocol-level yield into the product. Staking operations would be handled by Coinbase Crypto Services, adding a regulated institutional operator to the structure.
That design changes the risk profile. Returns would no longer depend solely on AVAX price movements, but also on staking performance and operational execution.
Pricing Signals Long-Term Intent
VanEck set the management fee at 0.30%, opting for steady pricing rather than temporary fee holidays. This places the fund among the lower-cost digital asset ETFs, even with the added complexity of staking.
The decision suggests confidence that investors will value the yield component without needing aggressive short-term incentives.

Regulatory Dialogue Is Clearly Ongoing
A third amended filing typically reflects continued engagement with the U.S. Securities and Exchange Commission, not a stalled application. By tightening disclosures around staking, custody, and operations, VanEck appears to be addressing regulatory sensitivities head-on.
READ MORE: Charles Hoskinson Warns U.S. Crypto Policy Is Being Pulled Into Political Warfare
While approval is not guaranteed, the level of detail signals that the proposal is moving through the review process rather than sitting idle.
Why This ETF Matters
If cleared, VAVX would represent a shift in U.S. crypto ETF design. It would blur the line between passive exposure and on-chain participation, something regulators have so far avoided.
Approval could set a precedent for staking-enabled ETFs tied to other proof-of-stake networks. Rejection, on the other hand, would clarify the current limits of what U.S. regulators are willing to allow. Either outcome will shape the next generation of crypto investment products.









