Bitwise updates its spot Avalanche ETF application documents to include staking functionality

According to CoinDesk, Bitwise has updated its application for a spot Avalanche ETF with the U.S. Securities and Exchange Commission (SEC). This revision changes the code of the Avalanche ETF to BAVA and sets the sponsorship fee rate at 0.34%, currently the lowest among similar products.

In comparison, VanEck's Avalanche ETF has a fee rate of 0.4%, while Grayscale's is at 0.5%. The updated S-1 application also states that the trust will be allowed to stake up to 70% of its AVAX holdings on Avalanche's proof-of-stake network to earn additional tokens. However, the issuer is considering deducting 12% of the earnings as fees, with the remainder distributed to shareholders.

Since competitors have not yet started staking operations, their fees are currently limited to sponsorship fees. Bitwise is also offering a full fee waiver for the first month on the initial $500 million in assets, aiming to position BAVA as the lowest-cost way for traditional investors to gain exposure to Avalanche and earn staking income.