Bitwise Investments has expanded its range of cryptocurrency exchange-traded funds (ETFs) with the launch of the Bitwise Avalanche ETF. Listed on the New York Stock Exchange under the ticker BAVA, the fund allows investors to gain exposure to AVAX, the native token of the Avalanche blockchain.
The Bitwise Avalanche ETF debuted with a 0% sponsor fee for the first month, covering up to $500 million in assets. After this initial period, the sponsor fee will rise to 0.34%. The fund's strategy involves staking approximately 70% of its assets through Bitwise Onchain Solutions, while maintaining a 30% liquidity reserve subject to monthly review.
Net staking rewards, worth around 5.4% annually, will be distributed to shareholders after expenses. However, returns are not guaranteed due to the risks associated with staking and price volatility in the cryptocurrency market.