VanEck launched the VanEck Avalanche ETF (NASDAQ:VAVX) on Monday, further expanding its suite of ETFs focused on digital assets. The new fund is the first ETP listed in the U.S. to offer investors access to the price movements and staking rewards of Avalanche's native token, AVAX.
According to the company, the new ETF is designed to provide a transparent, exchange-traded way to gain access to the Avalanche blockchain ecosystem, which the company believes will play a key role in the next phase of institutional blockchain adoption.
"Avalanche's architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy, focusing on verifiable, real-world utility," the company said.
Fee Waiver And Institutional Appeal
In connection with the listing, VanEck also announced that it is waiving all sponsor fees for VAVX on the first $500 million of assets under management or until Feb 28, whichever is earlier. The company stated that the waiver of sponsor fees aims to remove entry barriers and offer cost-efficient access to digital assets via the ETP solution.
Avalanche has been identified as a scalable blockchain platform with high-performance capabilities, allowing for the development of interconnected and customizable Layer 1 blockchains on public and private networks. The platform's consensus algorithm enables near-instant finality of transactions, which has been appealing to institutional players and corporations. VanEck pointed out that Citigroup, FIFA, and Gunzilla Games have already developed their own blockchains on the Avalanche platform.
Kyle DaCruz, director of Digital Assets Product with VanEck, explained that Avalanche's architecture is designed to bridge the gap between traditional finance and on-chain applications by bringing verifiable, real-world utility. This launch is part of a broader push to improve investor access to digital assets.
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