Bitwise Updates Avalanche ETF Filing with Lowest Sponsor Fee Among Peers
Bitwise’s revised SEC filing adopts the BAVA ticker and a 0.34% sponsor fee, enabling staking of most AVAX holdings to generate additional shareholder rewards.
AVAX
Summary
Bitwise amended its spot Avalanche ETF filing with the SEC, changing the fund’s ticker to BAVA and setting a sponsor fee at 0.34%, the lowest among similar crypto ETFs. The trust can stake up to 70% of its AVAX holdings, earning rewards through the Avalanche proof-of-stake network. A 12% fee will apply to staking rewards, with the remainder distributed to shareholders, highlighting Bitwise’s strategy to combine low costs with income generation.
Terms & Concepts
- Staking: Locking cryptocurrency in a blockchain network to earn rewards, often by validating transactions.
- Proof-of-Stake (PoS): A blockchain consensus mechanism where participants validate transactions based on the amount of cryptocurrency they hold and lock.
- Sponsor Fee: An annual charge by the ETF sponsor, expressed as a percentage of assets under management.