What’s Going On?
Asset manager Bitwise has filed formal documentation with the U.S. Securities and Exchange Commission (SEC) to launch a spot-crypto exchange-traded fund tracking the price of Avalanche (AVAX). The publicly disclosed S-1 amendment reveals that the ETF will trade under the ticker symbol “BAVA” and carry an annual management fee of 0.34%.
This filing positions Bitwise alongside other leading firms such as VanEck and Grayscale, who are also seeking to bring regulated AVAX exposure to institutional and retail investors in the U.S. crypto-ETF race.
ETF Structure & Custody Details
Under the proposed structure, the Bitwise Avalanche ETF will hold only AVAX coins not derivatives aiming to mirror its market value (minus fees and expenses). NAV (net asset value) will be calculated using the CME CF Avalanche Dollar Reference Rate (New York Variant), a benchmark rate reflecting executed trade flow across major Avalanche trading platforms.
Custody of the crypto assets is entrusted to Coinbase Custody Trust Company, ensuring institutional-grade security and compliance.
Bitwise has also indicated that the initial “baskets” of shares each representing a block of AVAX holdings will be created or redeemed only through authorized participants. Public trading will then allow investors to buy and sell ETF shares just like traditional securities.
Why This Matters for AVAX and Investors
- Simplified access: Investors can gain exposure to AVAX through a regulated brokerage account no need to manage wallets or navigate crypto exchanges directly.
- Institutional appeal: A regulated ETF structure lowers the entry barrier for institutional money, potentially scaling up demand for AVAX.
- Market legitimacy: As more traditional financial products wrap around cryptocurrencies, mainstream acceptance grows helping bridge crypto and traditional finance.
- Fee clarity: With a fixed 0.34% fee and transparent NAV pricing, BAVA offers predictable cost structure compared to some DeFi or staking routes.
What’s Next?
Before the ETF goes live, the SEC must complete its review. Meanwhile, Bitwise and competitors are racing to secure filing advantages, custodial compliance, and operational readiness. Market watchers expect the Avalanche ETF to join a growing wave of altcoin-linked funds slated for launch during late 2025 early 2026.
