VanEck introduces a staking mechanism for the AVAX fund, opening a new chapter in ETF earnings and investment opportunities.

VanEck Asset Management has made significant updates to its Avalanche Network fund VAVX application. The revised S-1 form explicitly states that the fund will generate additional returns for investors through staking. This move marks an innovative development in passive income generation for crypto asset funds.

How AVAX Staking Achieves Returns in the Fund

The fund plans to stake 70% of its AVAX assets to generate periodic income. Coinbase Crypto Services will serve as the initial service provider for staking operations. After deducting a 4% management fee, all staking rewards will be accumulated in the fund account and ultimately reflected in the fund’s net asset value. This structure ensures that investors can indirectly benefit from the rewards generated by validators on the AVAX network, while the fund bears the corresponding management costs.

As of February 2026, the current trading price of AVAX is $9.88, providing a reference benchmark for investors to evaluate the fund’s potential staking returns. The fund uses a custom index, the MarketVector Avalanche Benchmark Rate, to track AVAX’s price performance, constructed based on real-time data from major trading platforms.

Multi-layered Secure Storage Architecture Ensures Asset Safety

AVAX tokens are stored using regulated professional custody solutions, with Anchorage Digital and Coinbase Custody both included. These custodians employ offline cold wallet storage technology, keeping tokens in fully isolated systems to minimize hacking risks. This multi-custody mechanism is an actual application of traditional financial ETF security standards in the crypto space.

The fund does not use leverage trading or derivatives but instead adopts a direct holding approach, further reducing structural risks. Asset allocation remains relatively simple and transparent, making it easier for investors to understand and monitor.

Nasdaq Listing and Market Positioning

Once approved by the U.S. Securities and Exchange Commission (SEC), VAVX will be listed on the Nasdaq Stock Market, trading under the ticker VAVX. This will make AVAX another crypto asset accessible through standard stock accounts, further bridging the gap between crypto assets and traditional investors.

Industry Competition Landscape

Bitwise Asset Management has recently updated its application for an AVAX spot ETF, also adding staking income features. This indicates that the passive income mechanism created by staking has become a key feature attracting institutional investors in the crypto ETF space. The synchronized deployment by several leading asset management firms suggests that this product category is about to enter a period of rapid growth.

Through this application update, VanEck fully demonstrates how traditional financial institutions can incorporate the native yield mechanisms of crypto networks into standardized investment products through innovative structures. The inclusion of staking rewards not only provides holders with a value source beyond mere price appreciation but also reflects the ongoing evolution of crypto assets in financial engineering.