To provide investors with exposure to the Avalanche cryptocurrency while staking a portion of its holdings to produce return, Bitwise Asset Management has introduced a spot Avalanche exchange-traded product.
Bitwise intends to use its internal infrastructure to stake about 70% of its AVAX holdings while keeping a 30% liquidity reserve to cover redemptions and operational requirements.
According to Yahoo Finance, the fund started trading on the NYSE on Wednesday under the symbol BAVA, closing roughly 1.5% to $25.50 per share.
According to CoinMarketCap, the Avalanche coin was last traded at $9.52, up 1.8%.
The product is designed to deliver net investment income periodically, including staking awards, to shareholders and has a sponsor fee of 0.34%, with a temporary waiver to 0% for the first month on the first $500 million in assets, according to the statement made on Wednesday.
The fund directly owns AVAX and uses Bitwise Onchain Solutions, an internal staking unit, to take part in network validation and receive incentives that are paid out in extra tokens. The announcement states that as of mid-April, avalanche staking payouts were roughly 5.4%.
Avalanche is a Layer-1 blockchain designed with minimal latency and high throughput in mind. It is utilised in tokenisation and enterprise pilots, including FIFA-related projects, Wyoming’s state-level stablecoin initiatives, and ventures from businesses like Toyota and asset managers like BlackRock.
Source: X.com
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