VanEck has updated its filing for Avalanche exchange-traded fund VAVX to include staking rewards and generate income for investors.
In an amended S-1 filed with the SEC, the company disclosed that the fund may hold up to 70% of its AVAX holdings to generate income, with Coinbase Crypto Services listed as the initial collateral provider.
Any rewards, minus Coinbase’s 4% service fee, will be credited to the fund and reflected in the ETF’s NAV.
Under the plan, AVAX will be hosted by regulated custodians, including Anchorage Digital and Coinbase Custody, both of which will store the token offline in cold wallets.
The fund will not utilize leverage or derivatives and will track the price of AVAX via the MarketVector Avalanche Benchmark, a custom index constructed from major exchanges.
If approved, the fund will trade on Nasdaq under the ticker VAVX. Bitwise last month updated its SEC filing for the spot Avalanche ETF to enable revenue generation.
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