Bitwise Launches Avalanche ETF BAVA, Plans to Stake AVAX

Bitwise Asset Management launched an Avalanche exchange-traded fund on Wednesday, listing under the ticker BAVA. The firm, which manages about $11 billion, announced it will stake the fund’s AVAX holdings through its in-house staking arm.

The ETF is structured to give investors exposure to AVAX, the native token of the Avalanche blockchain, while allowing Bitwise to participate in network staking. Staking operations will be run by Bitwise Onchain Solutions, the firm’s onchain division, which will balance staking participation with the liquidity requirements of an ETF.

Bitwise said it intends to target the Avalanche network’s average staking yield of roughly 5.4%, with staking proceeds used alongside liquidity management to support the fund’s tradability and redemptions. The firm noted that actual rewards can vary depending on network conditions and validator performance.

Bitwise highlighted Avalanche’s support for custom, interoperable blockchains and pointed to use cases where AVAX has been adopted, including projects involving FIFA, Toyota and a stablecoin issued by the state of Wyoming.

Other asset managers have launched AVAX-based ETFs in recent months, and filings for products tied to smaller tokens have continued to appear. Market interest was visible at BAVA’s debut: an ETF analyst reported about $400,000 in trading volume for BAVA within its first 90 minutes on the market.

Bitwise did not disclose the fund’s seed assets or a full fee schedule in its initial announcement.

Avalanche’s protocol relies on staking as part of its operation. Bitwise’s onchain division will aim to maximize staking participation while maintaining the liquidity needed for ETF operations.