Coinbase has taken a few interesting steps recently — launching an Avalanche ETF traded under the ticker BAVA on the NYSE. What's special? It comes with a 5.4% staking yield, meaning you're not only getting exposure to the price of AVAX but also earning staking rewards.

The fund's structure is quite straightforward — at least 80% of the assets will be in AVAX. But here’s the twist: Coinbase will stake this AVAX directly through its on-chain solutions division. This means the fund is actively running staking operations, not just passively holding. They are also carefully managing liquidity to ensure investors face no issues. The management fee is 0.34%, and there are no fees for the first $500 million in the initial month.

The launch of this ETF is driven by increasing institutional activity on the Avalanche network. FIFA’s digital collectibles platform, Wyoming’s stablecoin project, and companies like Toyota are using Avalanche for supply chain solutions. Major financial players like KKR and BlackRock are also exploring tokenization on the network. This shows that Avalanche is no longer just a crypto project — it’s integrating into real-world financial systems.

According to Coinbase’s CIO Matt Hoggan, this ETF provides access to blockchains used in real-world financial systems. Anthony Scaramucci also said that Avalanche supports secure and efficient fund tokenization, especially in SkyBridge’s blockchain-based fund operations.

Currently, AVAX is trading around $9.40, up 1.86% in the last 24 hours. If you want exposure to Avalanche with an institutional-level staking facility, this could be a noteworthy option. Coinbase has nearly $11 billion in client assets through April 2025, so they know what they’re doing.