VanEck, a global financial services firm, has filed for a new Avalanche-based exchange-traded fund (ETF) that will include staking rewards for AVAX token investors. Under this fund, investors will receive not only ownership of AVAX tokens but also the staking rewards generated, potentially enhancing their overall returns. Coinbase Crypto Services has been appointed as the staking service provider; the company will charge a 4% service fee while the earned rewards will be directly added to the fund’s net asset value, reflecting in the share prices held by investors.
Avalanche is a high-speed, low-fee blockchain platform used for decentralized applications (dApps) and smart contracts, with AVAX serving as its native cryptocurrency that plays a crucial role in network operations and staking. Through staking, users lock their AVAX tokens to support network security and transaction validation, earning rewards in return. VanEck’s inclusion of staking rewards in the ETF presents an attractive opportunity for investors, offering potential gains from both AVAX price appreciation and additional income from staking. However, investors should remain mindful of the inherent volatility in crypto markets and possible risks related to staking, such as unexpected price declines and technical network issues.
This initiative marks a significant step toward integrating crypto assets into traditional financial products, potentially opening new avenues for investors to understand and invest in digital currencies.
Source: coindesk
