VanEck Files for Avalanche ETF with Staking, Boosting AVAX Rewards Potential

Asset management giant VanEck has submitted a groundbreaking filing for a spot Avalanche (AVAX) exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The proposed VanEck Avalanche Trust is designed to directly hold AVAX tokens and, in a significant industry move, incorporate staking rewards for investors. This structure aims to generate yield by participating in the Avalanche network's proof-of-stake consensus mechanism. The filing highlights growing institutional interest in blockchain assets that offer both capital appreciation and passive income opportunities. If approved, this ETF would provide traditional investors with a regulated avenue to gain exposure to AVAX and its staking yields, potentially increasing demand and utility for the Avalanche ecosystem. The move follows similar ETF applications for other major cryptocurrencies, signaling a trend towards more sophisticated crypto investment products.