VanEck has broadened its cryptocurrency exchange-traded fund (ETF) offerings with the launch of the VanEck Avalanche ETF (VAVX). The new fund provides investors with spot exposure to Avalanche (AVAX), the native cryptocurrency of the Avalanche blockchain. VAVX began trading on the Nasdaq on January 26, 2026.
Avalanche is a high-performance blockchain platform designed for scalability, facilitating a network of interconnected, customizable blockchains. It employs a unique consensus protocol that ensures near-instant transaction finality and enables the creation of interoperable Layer 1 blockchains across public and private networks. Major entities like Citi, FIFA, and Gunzilla Games have launched dedicated blockchains on the Avalanche network.
The VanEck Avalanche ETF allows investors to gain exposure to the AVAX token through a traditional exchange-traded product. A portion of the ETF's AVAX holdings will be staked, and the rewards generated, after fees, will be distributed to the ETF holders.
To attract early investment, VanEck is waiving the sponsor fees on VAVX for the first $500 million in assets under management (AUM) or until February 28, 2026. After this period, the sponsor fee will be 0.20%. Investors should also be aware that brokerage fees and commissions may apply.
Kyle DaCruz, Director, Digital Assets Product with VanEck, stated that Avalanche's architecture is uniquely positioned to bridge the gap between traditional finance and the on-chain economy, with a focus on verifiable, real-world utility.
An investment in the VanEck Avalanche ETF is subject to risk, including the high volatility of Avalanche (AVAX). Investors could lose their entire principal investment. VAVX is not registered under the Investment Company Act of 1940 and does not have the same protections as registered mutual funds or ETFs.
