Bitwise Launches Spot Avalanche ETP, Offering AVAX Exposure and Yield

Bitwise Asset Management has entered the market for Avalanche exchange-traded products (ETPs), offering investors a new way to gain exposure to the rapidly growing blockchain network. The spot Avalanche ETP, launched on Wednesday, allows investors to hold the AVAX token while benefiting from staking rewards.

The fund holds approximately 70% of its AVAX holdings in an in-house staking unit, Bitwise Onchain Solutions, which participates in network validation and earns rewards in additional tokens. The remaining 30% is reserved for liquidity purposes and to meet redemption requests. This structured approach enables the fund to distribute net investment income, including staking rewards, to shareholders periodically.

Avalanche has gained significant traction in recent months, with various initiatives and partnerships across tokenization, enterprise pilots, and state-level stablecoin efforts. The network's high throughput and low latency capabilities have attracted major players such as Toyota and BlackRock.