Key Highlights:
- Bitwise is offering regulated exposure to AVAX with integrated staking rewards.
- This ETP product can be traded on the Deutsche Börse Xetra exchange with full institutional-grade custody.
- This product provides daily accrual of staking rewards with a net expected yield of 4.83% and a low total expense ratio of 0.85% per annum.
Bitwise has launched the Bitwise Avalanche Staking ETP (Ticker: AVNB, ISIN: DE000A4APQX6) on the Deutsche Börse Xetra exchange. This adds to its existing European products that are fully backed by real cryptocurrency and follow crypto indexes. With this new exchange-traded product, investors will be able to invest safely in AVAX, the main token of Avalanche, a popular blockchain that is known to be fast, something that is energy-efficient, scalable, and has low transaction costs.
Product Features and Institutional Appeal
According to the press release, this product has been developed for investors who want a safe and regulated way to earn from the AVAX token. This product is backed and kept secure in professional cold storage in Germany. Investors will earn staking rewards everyday, after fees, which are directly added to the product.
The ETP product can be easily bought and sold on Xetra just like any regular stock or ETF. The process of buying or selling of the ETP product does not need any special crypto wallet or account. This makes it easy to access and invest.
The ETP uses the CF AVAX Staked Return Index as a benchmark, so investors can see how it performs when compared to the market, which includes both AVAX price changes and staking rewards. The expected annual staking reward is somewhere about 4.83%, and the yearly fee is 0.85%, making it a cost-effective way to earn from AVAX staking.
Bradley Duke, Bitwise’s Head of Europe, has also highlighted that this ETP product is built to meet the exact needs of professional investor standards. Duke, in his statements, has pointed out that, as mentioned above, Avalanche is fast, energy-efficient, and scalable. It is being used in areas such as payments, tokenized treasuries, event tickets, collectibles, and gaming.
Duke also mentioned that the main aim of Bitwise is to make sure that it is easier for institutional investors to get access to these digital assets through high-quality, regulated products that simplify investing in new blockchain projects.
Avalanche Blockchain Background
Avalanche uses a system that is known as the Avalanche Consensus Mechanism, which allows people to create their own custom blockchains for things such as governance, rules, and performance needs, while still connecting to the wider crypto world. The platform is being used more and more in finance, payments, and everyday apps. All of these use cases make Avalanche a promising blockchain for professional and institutional crypto products.
Industry Endorsements
John Wu, President of Ava Labs (the team behind Avalanche), praised Bitwise for making it easier for regular investors to get their hands on digital assets in a safe and regulated manner. He said that using regulated markets like Xetra helps bring more and more people into the Avalanche ecosystem, supporting innovation and growth in areas like finance, payments, and tokenized real-world assets.
Hunter Horsley, CEO of Bitwise, shared his excitement with an X post. He welcomed October and announced the launch of the new ETP. He showed excitement about giving European investors a safe, regulated way to invest in crypto and highlighted Bitwise’s work to make digital assets more accessible.
As soon as the news broke out, the price of the AVAX token has experienced a slight uptick. At press time, the price of the token stands at $30.71 with an uptick of 4.6% as per CoinGecko.
The launch of Bitwise Avalanche Staking ETP and the recent rise in AVAX price indicate that Avalanche is a strong and efficient blockchain. Regulated products like this make it easier and safer for people to invest in crypto and increase adoption. Such a system helps the ecosystem grow and innovate further.
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