The BAVA exchange-traded fund, launched by Bitwise on NYSE Arca, provides regulated exposure to Avalanche tokens. The fund distinguishes itself by actively staking approximately 70% of its holdings through the Onchain Solutions division, aiming for an average annual yield of 5.4%.
Following the fund's launch, assets under management reached between $18 million and $22 million. While single-day inflows have peaked near $5 million, other recorded periods saw inflows of approximately $231 000. At the time of the fund's debut, the price of AVAX was around $9.50, with a market capitalization of roughly $4.1 billion.
Bitwise set a sponsor fee of 0.34% for the fund, with a waiver in place for the first month on the initial $500 million in assets. The Avalanche network itself supports up to 4 500 transactions per second and has previously established partnerships with organizations such as Visa and FIFA for payment infrastructure and tokenized assets.
The structure of the BAVA fund may serve as a model for future crypto ETFs involving staking-enabled tokens like Solana, Polkadot, or Cosmos. By locking 70% of assets into staking contracts, the fund reduces the circulating supply of AVAX, though current management levels are not yet sufficient to significantly impact market dynamics.
