Global crypto asset manager Bitwise Asset Management has launched BAVA, a spot Avalanche Exchange-Traded Product (ETP) that provides investors with exposure to the Avalanche (AVAX) token, allowing them to earn yield without directly holding it.

 

 

Since the Avalanche network allows investors to earn rewards of up to 5.4% per year for staking AVAX, Bitwise, through its in-house staking division, Bitwise Onchain Solutions, will stake 70% of its AVAX holdings in the BAVA ETP, while the remaining 30% will be kept as a liquidity reserve to meet redemptions and operational needs.

 

Although BAVA allows investors to gain exposure to Avalanche’s AVAX, it is important to note that this exchange-traded product is not suitable for all investors. It is subject to a high degree of risk, is highly volatile, and could result in significant losses. Investors, therefore, need to exercise caution when investing in BAVA.

 

How BAVA Performed

Starting with initial assets under management of $2.5 million and a net asset value of approximately $25 per share, the BAVA crypto ETP recorded a trading volume of over $400,000 within the first 90 minutes of its launch.

 

Within its first day of trading, BAVA closed at $25.50, marking a 2 percent increase from its launch price and reaching $26. According to TradingView, BAVA is currently trading on the New York Stock Exchange at $26.30. Its assets under management have also grown from the initial $2.5 million to approximately $13 million to $19 million within days of its launch, while AVAX, the native cryptocurrency of the Avalanche network, is currently trading at $9.19, according to CoinGecko.

 

The launch of the spot AVAX ETP comes a few days after Bitwise launched the Hyperliquid Staking Exchange-Traded Product, BHYP, on Deutsche Börse Xetra in Europe. In January, the asset manager launched CLNK, a Chainlink exchange-traded fund that provides exposure to LINK, the native cryptocurrency of the Chainlink oracle network.

 

The Bitwise Proficio Currency Debasement fund, an exchange-traded fund that provides exposure to Bitcoin, gold, miners, and precious metals, was also launched by the asset manager earlier this year.

 

About the Avalanche Network

The Avalanche network is a high-performance Layer-1 blockchain designed for speed, scalability, and customization. It uses its own Avalanche, also known as Snow, consensus mechanism that allows a validator to select a small random subset of other validators to validate blockchain transactions.

 

Due to its high performance, several top-tier blockchain protocols have built on the Avalanche network, including the decentralized finance lending protocol Aave and the decentralized exchange WOOFi. Other tokenization institutions, such as Franklin Templeton, VanEck, and Securitize, have also built tokenized products on the Avalanche blockchain.