VanEck has updated its filing for an Avalanche exchange-traded fund, VAVX, to include staking rewards and generate income for investors.
In an amended S-1 filed with the US Securities and Exchange Commission, the company revealed that the fund can stake up to 70% of its AVAX holdings to generate returns, with Coinbase Crypto Services listed as the initial staking provider.
Any rewards, less a 4% service fee from Coinbase, would accrue to the fund and be reflected in the net asset value of the ETF.
Under the plan, AVAX will be held with regulated custodians, including Anchorage Digital and Coinbase Custody, both of which store tokens offline in cold wallets.
The fund will not use leverage or derivatives, and will track the price of AVAX via the MarketVector Avalanche Reference Rate, a custom index built from major exchanges.
If approved, the fund would trade under the symbol VAVX on Nasdaq. Bitwise last month updated its Avalanche spot ETF filing with the SEC to also allow for yield generation.
Read More: US Clears Way for Crypto ETPs to Earn Yield Without Raising Tax Issues
