Asset manager Bitwise Asset Management is gearing up to bring a new crypto investment product to traditional markets, with plans to list its Avalanche-based ETP, BAVA, on the New York Stock Exchange in 2026.
The upcoming product is designed to give investors direct exposure to Avalanche (AVAX)—while also offering the added benefit of staking rewards. In simple terms, BAVA combines price exposure and yield into a single, easy-to-trade financial instrument, making it more accessible for traditional investors who may not want to deal with the complexities of holding and staking crypto themselves.
A familiar strategy, now applied to Avalanche
Bitwise is following a strategy it has already used for major cryptocurrencies like Bitcoin and Ethereum. Often referred to as the “carry plus beta” model, this approach blends asset price exposure (beta) with additional income generated through staking (carry).
With BAVA, the firm plans to hold AVAX tokens directly and stake a large portion of them through its in-house infrastructure, Bitwise Onchain Solutions. The goal is to generate an average staking yield of around 5.4%.
To maintain liquidity for trading on the exchange, the fund is expected to allocate about 70% of its holdings to staking and keep the remaining 30% in reserve. This balance allows shares of the ETP to trade smoothly while still capturing staking rewards, which will be distributed to investors on a regular basis.
Why Avalanche?
Bitwise sees Avalanche as more than just another blockchain. According to the company, the network is gaining traction in areas like enterprise adoption and government-backed initiatives. Its high-performance architecture and scalability make it appealing for real-world use cases, particularly in finance and institutional applications.
Matt Hougan, CIO at Bitwise, highlighted Avalanche’s growing role in global finance, noting that the new product aims to provide exposure to what the firm believes is a key driver of the next wave of blockchain adoption.
Yield expectations and market positioning
Current staking returns on Avalanche typically range between 4.5% and 7%, depending on network conditions and validator configurations. The 5.4% target set by Bitwise falls comfortably within this range, positioning BAVA as a competitive option for yield-seeking investors.
The launch also places BAVA in an increasingly crowded space. Bitwise already offers a similar Avalanche staking ETP in Europe under the ticker AVNB. Meanwhile, competitors like VanEck and Grayscale have introduced their own AVAX-focused investment vehicles, some of which also include staking rewards.
Risks remain
Despite the appeal, Bitwise is clear about the risks. BAVA will be tied to a single, highly volatile asset. Factors like price swings, regulatory changes, liquidity constraints, and staking-related risks could all impact performance. In extreme cases, investors could face significant losses.
Still, products like BAVA are increasingly seen as a bridge between traditional finance and the crypto world—bringing on-chain opportunities like staking into familiar investment formats.
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