Grayscale Investments is launching the Grayscale Avalanche Staking ETF under the ticker GAVA on Nasdaq. The company created this product through the conversion of the former Grayscale Avalanche Trust, which previously traded over the counter under the symbol AVAXFUN. Coinbase Custody handles the custody of the AVAX tokens.
Up to 70 percent of holdings can be staked, with staking rewards flowing directly to shareholders. With GAVA, Grayscale enters the US market for spot AVAX ETFs as the third provider. VanEck launched the VAVX in late January 2026, marking the first such product. Bitwise has filed its own application under the ticker BAVA but is not yet listed. Grayscale charges a sponsor fee of 0.50 percent, placing the asset manager well above VanEck (0.20 percent) and Bitwise (0.34 percent).
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Staking yields in an ETF wrapper
GAVA's central feature is its integrated staking function. Up to 70 percent of the fund's AVAX holdings may be staked. In 2025, the average AVAX staking yield stood at 7.36 percent. Traditional crypto ETFs tracking Bitcoin or Ethereum have not offered a comparable yield component to date. AVAX ETFs are therefore setting a precedent for yield-bearing crypto investment products.
Grayscale uses an in-kind creation/redemption mechanism. Authorized participants exchange AVAX tokens directly for ETF shares rather than taking the detour through cash purchases. This eliminates the spread that typically occurs with cash-based creations. VanEck also uses Coinbase for staking but charges a separate service fee of 4 percent. Bitwise, meanwhile, plans a yield cut of 12 percent on staking rewards.
All three providers are competing not only on sponsor fees but also on staking terms. In the long run, what matters most is how much of the gross yield reaches the investor, not the headline fee alone.
Grayscale's fee strategy
Grayscale filed the original S-1 application to convert the Avalanche Trust back in August 2025. A second amendment followed on January 3, 2026, incorporating the staking function with up to 70 percent of holdings for the first time. Grayscale deliberately did not disclose specific fees at that point.
Instead, the asset manager pursued a strategic delay in fee disclosure. Grayscale first observed competitors' pricing before setting its own terms. At 0.50 percent sponsor fee, the product still positions itself as the most expensive of the three offerings. VanEck had even offered a fee waiver at launch, waiving fees entirely on the first $500 million in AUM through the end of February 2026.
This higher cost structure is nothing new for Grayscale. Already with the Bitcoin Trust (GBTC), fees stood at 1.50 percent, far above competing products from BlackRock and Fidelity. Grayscale implicitly argues on the strength of its established brand and existing investor base from the trust product. Whether institutional investors will accept the same premium for a niche asset like AVAX remains to be seen.
Three providers splitting a small market
VanEck launched the VAVX on January 27, 2026, with initial AUM of $2.49 million. Since then, AUM has grown to $11.56 million, with cumulative inflows of just under $9 million. For a niche ETF on an altcoin, that represents solid growth within six weeks.
AVAX was trading at around $9.53 at the time of the GAVA launch. Total ETF volume for Avalanche remains in the low double-digit millions. Bitcoin ETFs, by contrast, were managing billions within months of their launch. In other words, the AVAX market operates on an entirely different scale.
Meanwhile, the regulatory environment under the current US administration has shifted considerably. Now the SEC is showing greater openness toward crypto ETF structures, particularly those with integrated staking functions. A yield-bearing crypto ETF in the US would have been nearly unthinkable just two years ago. This regulatory shift is enabling providers to bring altcoin-based yield products to market.
From OTC to exchange-traded product
Grayscale has converted several of its closed-end trust products into ETFs over the past few years. With Avalanche, the company follows a strategy it already executed for Bitcoin and Ethereum. Converting from an OTC-traded trust to an exchange-listed ETF improves liquidity. As a result, the discount to net asset value (NAV) that many trust products suffered from for years typically shrinks.
Still, the starting conditions for Avalanche differ from Bitcoin. The AVAX ETF market is just getting started. Three providers are competing for institutional capital in an asset class that is far less established. Grayscale's higher fee structure could become a disadvantage unless the product delivers superior staking yield or operational advantages. At the same time, the asset manager brings existing investors from the trust product and transitions them seamlessly into the ETF.
Competition among AVAX ETF providers centers on fees and staking terms. Bitwise is still awaiting exchange approval. On costs, Grayscale has the least room to maneuver compared to VanEck and Bitwise.
