Coinbase to Power Staking for VanEck’s Groundbreaking Avalanche ETF

In a landmark development for crypto-backed investment products, asset management giant VanEck has amended its filing for the VAVX Avalanche ETF to incorporate a novel staking mechanism. The proposed fund plans to stake up to 70% of its AVAX holdings, directly integrating proof-of-stake blockchain rewards into a traditional ETF structure. This strategic move, set to be facilitated through Coinbase Crypto Services, signifies a major evolution in how institutional and retail investors can gain exposure to and benefit from the underlying mechanics of blockchain networks. The amended filing, submitted to the U.S. Securities and Exchange Commission, details that the fund will delegate its AVAX assets to Coinbase for staking on the Avalanche network. The rewards generated from this activity will then be passed on to the ETF's investors, net of a 4% fee deducted by the fund. This model effectively allows investors to earn a yield on their holdings without the technical complexities of managing validator nodes or securing private keys, bridging the gap between passive investment and active network participation. This initiative represents a significant step forward in the maturation of cryptocurrency investment vehicles. By embedding staking—a core function of proof-of-stake blockchains—into an ETF, VanEck is creating a product that captures not just the price appreciation of the asset but also its native yield-generating potential. It acknowledges the fundamental value proposition of staking networks and packages it within a regulated, familiar investment wrapper. The choice of Coinbase, a publicly traded and regulated entity, as the staking partner underscores the focus on security, compliance, and institutional-grade infrastructure. The implications are profound for the broader market. If approved, the VAVX ETF could set a precedent for future crypto ETFs, encouraging other asset managers to include staking features for assets like Ethereum, Solana, and others. It validates the economic model of proof-of-stake and could drive further institutional capital towards networks that offer such yield opportunities. For Avalanche specifically, this could enhance network security through increased staked volume and boost its visibility and legitimacy in the traditional finance sector. As of December 2025, this filing positions VanEck at the forefront of innovating within the converging worlds of decentralized finance and regulated investment products.

VanEck Proposes Staking 70% of AVAX in New Avalanche ETF

VanEck has amended its filing for the VAVX Avalanche ETF to include staking rewards, marking a significant evolution in crypto-backed investment products. The fund plans to stake up to 70% of its AVAX holdings through Coinbase Crypto Services, with rewards accruing to investors after a 4% fee deduction.

The MOVE represents a novel fusion of traditional ETF structures with proof-of-stake blockchain mechanics. Custody will be split between Anchorage Digital and Coinbase Custody, underscoring institutional-grade security measures.

If approved by the SEC, VAVX would pioneer a new category of investment vehicles that combine spot crypto exposure with native yield generation. This development reflects growing institutional sophistication in digital asset product design.

Coinbase Collaborates with Brooklyn DA to Combat Crypto Scams

Coinbase has partnered with the Brooklyn District Attorney's Office to investigate and dismantle a crypto impersonation scam targeting users. CEO Brian Armstrong issued a stern warning, emphasizing that digital trails left by blockchain transactions make it inevitable for scammers to face legal consequences. One individual has already been apprehended in connection with the scheme.

The fraud involved bad actors posing as legitimate crypto service providers to deceive victims and siphon funds. Coinbase's blockchain analytics team played a pivotal role in tracing transactional fingerprints linked to the network. Armstrong reaffirmed the exchange's commitment to working with law enforcement until all perpetrators are held accountable.

This case underscores the paradoxical transparency of cryptocurrency networks—while pseudonymous, the Immutable nature of blockchain records creates forensic advantages for investigators. "The ledger doesn't lie," Armstrong noted, signaling a new era of enforcement collaboration between exchanges and prosecutors.