Wall Street Eyes Yield With Bitwise‘s New Avalanche ETF On NYSE

• Bitwise launched the Bitwise Avalanche exchange-traded fund on the New York Stock Exchange on Wednesday.
• The fund includes in-house staking, targeting 5.4% rewards, placing it as a yield-generating crypto exchange-traded product.
• The move comes amid growing institutional activity in crypto markets, with Morgan Stanley recently accumulating Bitcoin and Goldman Sachs reportedly filing for a Bitcoin product.

Avalanche (AVAX) exchange-traded fund (BAVA) from Bitwise Asset Management launched on the New York Stock Exchange (NYSE) on Wednesday, giving investors direct exposure to the native token with built-in staking rewards.

Bitwise, the crypto fund manager, announced the launch on X and said the Bitwise Avalanche exchange-traded fund (ETF) was the only Avalanche-linked exchange-traded product (ETP) to include internally managed staking and target roughly 5.4% in current staking rewards. 

According to Bitwise, the in-house staking was aimed at offering “investors the highest levels of transparency, security, and professional management.” BAVA will track AVAX price performance and distribute net staking rewards to shareholders periodically. 

As of writing, BAVA’s price was trading at $25. Bitwise said that it will trade at a 0% fee for the first month, and with a sponsor fee of 0.34% thereafter.

Avalanche’s price was trading over $9, down by 0.4% over the past 24 hours. On Stocktwits, the retail sentiment around AVAX remained in the ‘bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day.

Avalanche Gains Traction Among Companies

Bitwise also added that Avalanche had gained traction among companies. Avalanche is a layer-1 blockchain designed for high-speed and scalable applications, allowing developers to create custom blockchains, known as subnets, tailored to specific use cases. The network uses a proof-of-stake model that enables token holders to earn rewards through staking.

According to Bitwise, more than 100 such custom blockchains were launched on Avalanche last year, including projects involving Visa, Citi, FIFA, and SkyBridge. 

Wall Street Expands Deeper Into Crypto Yield Strategies

The launch reflects a broader push by companies to expand crypto exchange-traded products beyond Bitcoin (BTC) and Ethereum (ETH), as firms expand exposure to alternative blockchain networks like Avalanche.

Bitwise launched the first US spot Solana staking ETP last year, called Bitcoin Solana Staking ETF (BSOL). Competing Avalanche ETFs from VanEck and Grayscale, called the Grayscale Avalanche Staking ETF (GAVA), have also been filed but have not yet incorporated staking rewards.

This also coincides with traditional financial institutions deepening their involvement in digital assets. Morgan Stanley recently launched its own Bitcoin ETF (MSBT) earlier this month, while Goldman Sachs (GS) filed for a Bitcoin Premium Income ETF on Tuesday.

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