Bitwise's Upcoming Avalanche Staking ETF
- Bitwise plans to launch an Avalanche staking ETF by 2026.
- Impact on AVAX supply and investor interest.
- Potential approval by late 2025 or early 2026.
Bitwise Asset Management has filed for a staking Avalanche (AVAX) ETF expected to commence trading on NYSE Arca by Q1 2026.
The ETF could stabilize AVAX prices by reducing liquid supply, fostering institutional interest, and providing yield for investors.
Bitwise Asset Management has filed for a staking Avalanche (AVAX) ETF. The ETF is anticipated to start trading in early 2026. This inaugural staking feature allows for staking up to 70% of AVAX holdings.
The initiative involves Bitwise and focuses on staking AVAX. It marks a first in the U.S. crypto ETF arena, offering significant yield opportunities. The ETF features a competitive 0.34% annual fee, aiming to attract institutional investors.
The filing could impact AVAX liquidity, as a large portion may be locked for staking. This could lead to a reduction in available supply, potentially supporting price levels. The ETF’s feature adds a strategic layer to traditional market dynamics.
Financiers may find the staking aspect appealing, potentially enhancing investor attraction. The precedent set by Bitcoin and Ethereum ETFs suggests potential increases in institutional inflows, often benefiting the respective cryptocurrency markets.
AVAX prices, affected by the broader market conditions, showed rapid shifts in recent months. The proposition of an ETF featuring staking might contribute to bolstered price action and stability. 99bitcoins
Historical trends in ETF approval indicate possible positive price action for AVAX. The unique staking feature could create new demand for Layer 1 tokens, with potential gains mirroring established ETF histories. An industry analyst commented that,
“The introduction of staking ETFs marks a new chapter for institutional engagement with Layer 1 assets.”
