AVAX Spot ETF New Approach: Stake 70% of holdings to let investors enjoy on-chain rewards

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【Blockchain Rhythm】AVAX spot ETF has a new twist. Recently, VanEck updated the application documents for its AVAX spot ETF (ticker VAVX). This time, the focus is on introducing a staking reward mechanism—plans to stake 70% of AVAX holdings to generate on-chain returns directly for investors.

This design idea is quite interesting. The staking service will be supported by a leading compliant platform, which will charge a 4% service fee. The rewards generated from staking will be accumulated into the fund and ultimately reflected in the net asset value of each share. The benefit of this approach is that investors don’t need to handle the staking details themselves; they can enjoy additional AVAX staking rewards simply by purchasing the ETF.

Custody is also solid, managed by two well-known digital asset custody institutions. This setup ensures the safety of investors’ assets. The entire scheme seems to be an attempt to combine on-chain yields with traditional financial products, lowering participation barriers while maintaining attractive returns.

AVAX-1.22%
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LiquiditySurfervip
· 1h ago
70% stake sounds good, but that 4% service fee is a bit painful, it takes more than half of the stake earnings...
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DegenWhisperervip
· 14h ago
70% staking? At first glance, it sounds great, but after a 4% service fee, how much profit can actually be left...
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