Cryptocurrency asset management company Bitwise has announced the launch of a new exchange-traded fund (ETF) focused on Avalanche (AVAX).
According to the company’s statement, the product, which will trade under the name “Bitwise Avalanche ETF” (BAVA), is scheduled to be launched to investors on the New York Stock Exchange on April 15.
AVAX’s price has lost 52% of its value in the last year, during a period when the cryptocurrency market was also experiencing a downturn.
The new ETF offers investors direct exposure to the price of Avalanche (AVAX) while also providing access to staking returns. Bitwise aims for an annual return of approximately 5.4% by managing AVAX assets held within the fund through its in-house staking unit. The company stated that maintaining liquidity will be a priority throughout the process.
The fund’s management fee was announced as 0.34%, and it was stated that no fees would be charged to investors during the first month and up to the first $500 million in asset size. This step is believed to aim at increasing institutional interest in the new product.
Bitwise CIO Matt Hougan argued that the Avalanche network is increasingly prominent, particularly in enterprise use cases, claiming that its flexible structure and scalability play a significant role in finance and corporate applications. Hougan stated that with the BAVA ETF, investors can gain access to an asset they believe will power the next wave of blockchain adoption.
*This is not investment advice.
