Avalanche ETF Race Intensifies as Bitwise and VanEck Update SEC Filings, AVAX Jumps 7%

Bitwise has advanced its spot Avalanche ETF by submitting an updated S-1 filing to the U.S. Securities and Exchange Commission (SEC), finalizing key details for the product. The ETF, set to trade under the ticker BAVA on NYSE Arca, includes a management fee of 0.34%, which will be fully waived for the first month of trading or until the fund accumulates $500 million in assets. This fee waiver strategy aims to accelerate early inflows and adoption.

Notably, the Bitwise Avalanche ETF will participate in staking rewards, distributing yield to investors—a feature that goes beyond mere price exposure. Custody is split between Coinbase Custody Trust Company for Avalanche tokens and BNY Mellon for cash. Bitwise Investment Manager will provide seed capital of $2.5 million by purchasing 100,000 shares at launch.

In parallel, VanEck amended its own Avalanche ETF application, disclosing the ticker VAVX for listing on Nasdaq. The updated filing replaces Gemini Trust with Anchorage Digital Bank as the primary custodian for AVAX assets, while Coinbase Custody Trust Company serves as a secondary custodian and State Street Bank and Trust Co. handles cash custody. VanEck's ETF will also incorporate staking, though specific details remain undisclosed, and the fund will track the MarketVector Avalanche Benchmark Rate index.

The competition for the first Avalanche ETF is heating up, with Grayscale also having filed a proposal in September. The Depository Trust & Clearing Corporation (DTCC) has already listed the Avalanche ETF on its clearing eligibility roster, indicating advanced preparation. AVAX price surged over 7% in 24 hours and more than 18% weekly, driven by these developments and broader crypto market recovery, with trading volume and derivatives open interest rising significantly.