Asset manager Bitwise has launched a spot Avalanche exchange-traded product, trading under the ticker BAVA on the NYSE. The fund holds AVAX tokens directly and stakes approximately 70% of its holdings through an in-house unit to generate yield, with a current sponsor fee of 0.34%. This development follows a recent filing by Nasdaq to list a VanEck Avalanche Trust, signaling growing institutional interest in the Avalanche blockchain.
Bitwise Asset Management launched a spot Avalanche exchange-traded product, giving investors exposure to the Avalanche token while staking a portion of its holdings. The firm plans to stake roughly 70% of its AVAX holdings through its in-house infrastructure, while maintaining a liquidity reserve of about 30%.
The fund began trading Wednesday on the NYSE under the ticker BAVA, closing up about 1.5% at $25.50 per share. The Avalanche token (AVAX) was last trading at $9.52, up 1.8% according to market data.
The product carries a sponsor fee of 0.34%, with a temporary waiver to 0% for the first month on the first $500 million in assets. It is structured to distribute net investment income, including staking rewards, to shareholders periodically as stated in the announcement.
The fund uses Bitwise Onchain Solutions to participate in network validation and earn rewards, which are paid in additional tokens. Avalanche staking rewards were about 5.4% as of mid-April, according to the announcement.
The new fund is the latest Avalanche fund development in recent weeks. Nasdaq last week filed with the US Securities and Exchange Commission to list shares of the VanEck Avalanche Trust, a proposed ETF.
The launch comes as exchange-traded crypto products and publicly traded companies accumulate a growing share of Bitcoin’s circulating supply. Data shows Bitcoin ETFs hold more than 1.29 million BTC, or just over 6% of circulating supply.
Public companies hold an additional 1.17 million BTC on their balance sheets, based on figures from BitcoinTreasuries.NET. Combined, ETFs and corporate holders now account for around 12% of Bitcoin’s circulating supply.
Among ETFs, accumulation is led by BlackRock’s iShares Bitcoin Trust, which holds about 791,000 BTC. It is followed by Grayscale’s Bitcoin Trust with around 153,600 BTC.
Earlier this month, the Morgan Stanley Bitcoin Trust recorded $30.6 million in inflows on its trading debut. On Tuesday, Goldman Sachs filed with the SEC to launch a Bitcoin-linked exchange-traded fund designed to generate income while limiting exposure to volatility.
Among public companies, Strategy, chaired by Michael Saylor, holds 780,897 Bitcoin. Governments also collectively hold around 3% of circulating Bitcoin, with the United States as the largest holder.
