Crypto Giants Stake 70% of AVAX ETF Holdings Amid Regulatory Clarity

Bitwise, VanEck, and Grayscale have collectively staked approximately 70% of their spot AVAX exchange-traded funds (ETFs) assets. The firms launched these products in the first half of this year, initially without staking as part of their strategies.

However, as regulatory clarity improved, they progressively integrated staking into their operations. Grayscale's GAVA leads the group, with about 81% of its fund assets staked as of the end of August.

The move toward staking reflects a broader trend in the crypto ETF space, where issuers are seeking to differentiate their products and provide additional value to shareholders.

Staking has become a key feature for these funds, allowing investors to earn additional yield on their AVAX holdings. By staking, these funds can generate returns that help offset management fees and potentially enhance overall performance.