Bitwise updates its application documents for the spot Avalanche ETF, proposing to add staking functionality

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

In comparison, VanEck's Avalanche ETF rate is 0.4%, while Grayscale's is 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 allocated to shareholders.

Since competitors have not yet launched staking services, 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.