Key Takeaways:

• Bitwise launched a new ETF (BAVA) that lets people invest in AVAX and earn extra rewards through staking.
• Each share is currently backed by about 2.68 AVAX, with around 70% of the tokens used to generate additional returns.
• The fund is risky, as AVAX prices can swing sharply, and it has fewer protections than traditional ETFs.

Bitwise Asset Management, a San Francisco-based crypto investment company that manages over $15 billion in client assets, launched the Bitwise Avalanche exchange-traded fund (ETF) on the New York Stock Exchange on 15 April 2026.

Trading under the ticker BAVA, the fund gives investors a regulated way to own Avalanche’s native token, AVAX, through a standard brokerage account, while also earning staking rewards.

What is BAVA, and how does it work?

An ETF works like a regular stock: You buy and sell it on an exchange without holding the underlying asset yourself. In this case, BAVA holds real AVAX tokens on the ETF owners’ behalf. Each share of the ETF is equal to 2.68 AVAX at the time of writing.

Instead of leaving those tokens unused, Bitwise stakes roughly 70% of the fund’s AVAX through Bitwise Onchain Solutions, its in-house staking division. The remaining 30% is held as a liquidity reserve to help meet investor buy and sell requests smoothly.

Avalanche currently offers an average total staking reward of around 5.4% annually. After deducting operational costs, the net return to investors is about 3.33%, though these rewards are not fixed and can change over time. They are distributed periodically and are reflected in the ETF’s price over time.

BAVA charges a 0.34% annual sponsor fee, which is waived for the first month on up to $500 million in initial investments.

Learn More: Crypto Trading and Web3 Essentials — From On-Chain Tools to NFT Finance

What is Avalanche, and why did Bitwise choose it?

Avalanche is a high-performance blockchain designed for speed and flexibility. It allows businesses and developers to build custom blockchains with their own rules, while still connecting to the main Avalanche network and benefiting from its fast transaction speeds and low fees.

With a market capitalization (total value of all coins) of $4.1 billion at the time of writing, AVAX ranks among the more established digital assets globally.

The network is already used in real-world projects, including:

• FIFA’s digital collectibles platform (with 2026 World Cup ticket options)
• Wyoming’s and the United States’ first state-issued stablecoin, called Frontier (FRNT)
• Toyota’s supply chain programs
• Tokenization projects — where assets like bonds are converted into digital tokens — by financial institutions like BlackRock and Apollo.

BAVA is the third US-listed AVAX exchange-traded product (ETP). VanEck launched the first US Avalanche ETF, VAVX, in January 2026 with a 0.40% fee. Grayscale’s GAVA followed in March 2026 at 0.50%. At 0.34%, BAVA carries the lowest fee of the three.

On its first day, ETF analyst James Seyffart noted that BAVA recorded over $400,000 in trading volume within its first 90 minutes, signaling strong early activity.

Related: Bitwise Launches Bitcoin, Gold, and Mining Stocks ETF

Key risks investors must weigh

Despite its features, BAVA carries significant risks. AVAX is known for sharp price swings, and the fund could lose a large portion, or even all, of its value.

Staking adds another layer of uncertainty: Rewards may be cut or lost due to network penalties, and operational failures in the staking program could delay investor withdrawals.

The ETF is not registered under the Investment Company Act of 1940, meaning it lacks the same investor protections as conventional mutual funds and ETFs. In addition, regulatory changes, low market liquidity, and the gradual decline in AVAX per share due to fees are factors people should consider carefully before investing.