On January 26, 2026, global asset manager VanEck launched the first U.S.-listed exchange-traded product (ETP) tracking the Avalanche blockchain's native token, AVAX. The product, trading under the ticker VAVX, is structured as a grantor trust and offers investors exposure to AVAX price movements combined with staking rewards, which are automatically integrated into the fund's returns.
VanEck is implementing a significant fee waiver to attract initial investment. The firm will waive all sponsor fees for the first $500 million in assets under management or until February 28, 2026, whichever comes first. After this promotional period, the annual sponsor fee will be 0.20%.
Kyle DaCruz, VanEck's Director of Digital Assets, highlighted the strategic importance of the launch, stating, "Avalanche's architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy." He emphasized the network's dual utility across various financial sectors.
While marketed as an "ETF," the product is technically not an SEC-approved exchange-traded fund. It operates under existing regulations for commodity-based trusts, a common structure for single-asset crypto products awaiting full ETF approval. The trust will hold AVAX tokens directly, providing a regulated, custodial gateway for institutional and retail investors to gain exposure without managing private keys.
The launch marks a pivotal step in the institutionalization of cryptocurrencies beyond Bitcoin and Ethereum. It follows VanEck's existing suite of digital asset funds and specifically validates the Avalanche ecosystem. Analysts from Bloomberg Intelligence noted the launch as a "substantial endorsement" of AVAX, signaling its maturation within traditional finance frameworks.
Avalanche, launched in 2020 by Ava Labs, is an EVM-compatible Layer-1 blockchain known for high throughput and sub-second transaction finality. Its native token, AVAX, is used for fees, staking, and securing the network. Despite a current market rank around 20th-33rd with a valuation of approximately $7 billion, it remains one of the most actively developed platforms.
The introduction of VAVX provides a new liquidity conduit and could increase demand for the underlying AVAX token, as the trust must acquire tokens to back its shares. The move also sparked community speculation, as VanEck chose to prioritize an AVAX product over a potential XRP ETF, though the firm has not publicly commented on its selection strategy.
