Bitwise Avalanche ETF (BAVA) Files S-1/A, Details 0.34% Fee & Staking Plan
Ticker: BAVA · Form: S-1/A · Filed: Nov 26, 2025 · CIK: 2086017
| Field | Detail |
|---|---|
| Company | Bitwise Avalanche Etf (BAVA) |
| Form Type | S-1/A |
| Filed Date | Nov 26, 2025 |
| Risk Level | high |
| Pages | 15 |
| Reading Time | 18 min |
| Key Dollar Amounts | $500 million, $200, $25, $2,500,000, $1.235 billion |
| Sentiment | bullish |
Sentiment: bullish
Topics: Cryptocurrency ETF, Avalanche, Spot ETF, Bitwise, Digital Assets, Staking, SEC Filing
TL;DR
**Bitwise is pushing hard for a spot Avalanche ETF, and that 0.34% fee with a waiver is a clear play for early market dominance.**
AI Summary
The Bitwise Avalanche ETF (BAVA) is an exchange-traded product aiming to provide exposure to Avalanche (AVAX) value, less expenses, with a secondary objective of deriving additional AVAX through staking. The Trust will hold Avalanche and establish its Net Asset Value (NAV) using the CME CF Avalanche–Dollar Reference Rate – New York Variant, calculated by CF Benchmarks Ltd. The Sponsor, Bitwise Investment Advisers, LLC, will charge a unitary management fee of 0.34% per annum of the Trust's Avalanche holdings, with a full waiver on the first $500 million of Trust assets for the first month post-listing. Coinbase Custody Trust Company, LLC will serve as the Avalanche Custodian, responsible for secure safekeeping and establishing segregated accounts. Bitwise Asset Management, Inc. provided $200 in seed capital on October 22, 2025, purchasing 8 Shares at $25 each. Bitwise Investment Manager, LLC is expected to purchase initial Baskets totaling $2,500,000 (100,000 Shares at $25 each) to acquire Avalanche prior to listing on NYSE Arca, Inc. The Trust is not regulated under the Investment Company Act of 1940 or the Commodity Exchange Act of 1936.
Why It Matters
This S-1/A filing signals Bitwise's advanced preparations for launching a spot Avalanche ETF, offering investors a regulated avenue to gain exposure to the AVAX cryptocurrency without direct ownership complexities. The 0.34% management fee, coupled with a one-month waiver on the first $500 million, positions BAVA competitively against other potential crypto ETFs and direct AVAX holdings, potentially attracting significant early capital. For employees, this expands Bitwise's product suite in the growing digital asset space, while customers gain a new, potentially more accessible investment vehicle. The broader market will watch this launch as another step in mainstream crypto adoption, intensifying competition among asset managers for market share in the digital asset ETF sector.
Risk Assessment
Risk Level: high — The filing explicitly states, 'AN INVESTMENT IN THE TRUST MAY NOT BE SUITABLE FOR INVESTORS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD AVALANCHE OR INTERESTS RELATED TO AVALANCHE. THE SHARES ARE SPECULATIVE SECURITIES. THEIR PURCHASE INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT.' This direct warning, coupled with the inherent volatility of digital assets like Avalanche, indicates a high-risk investment.
Analyst Insight
Investors should carefully evaluate their risk tolerance given the 'high degree of risk' explicitly stated in the filing. Consider BAVA as a speculative allocation within a diversified portfolio, focusing on the potential for capital appreciation rather than income, and be prepared for significant price fluctuations.
Financial Highlights
- total Assets
- $2,500,000
- total Debt
- $0
Key Numbers
- 0.34% — Unitary management fee (Annual fee on Trust's Avalanche holdings)
- $500 million — Sponsor Fee waiver threshold (Fee waived on first $500M of assets for 1 month)
- $200 — Seed capital investment (Amount purchased by Bitwise Asset Management, Inc. on Oct 22, 2025)
- 8 — Seed Shares purchased (Number of shares purchased by Seed Capital Investor)
- $25 — Per-Share price (Price for Seed Shares and initial Seed Baskets)
- $2,500,000 — Initial Seed Baskets purchase (Expected purchase by Bitwise Investment Manager, LLC)
- 10,000 — Shares per Basket (Standard block size for creation and redemption)
- 20th — Avalanche market cap ranking (Ranking among over 19,000 digital assets as of Nov 20, 2025)
Key Players & Entities
- Bitwise Avalanche ETF (company) — Registrant and issuer of Shares
- Bitwise Investment Advisers, LLC (company) — Sponsor and manager of the Trust
- Coinbase Custody Trust Company, LLC (company) — Avalanche Custodian for the Trust's holdings
- Bitwise Asset Management, Inc. (company) — Parent of the Sponsor and Seed Capital Investor
- Bitwise Investment Manager, LLC (company) — Affiliate of the Sponsor, expected to purchase initial Seed Baskets
- SEC (regulator) — U.S. Securities and Exchange Commission
- NYSE Arca, Inc. (company) — Anticipated exchange for listing BAVA Shares
- Richard Coyle, Esq. (person) — Legal counsel from Chapman and Cutler LLP
- Myles O’Kelly, Esq. (person) — Legal counsel from Chapman and Cutler LLP
- Hunter Horsley (person) — Contact at Bitwise Investment Advisers, LLC
FAQ
What is the primary investment objective of the Bitwise Avalanche ETF?
The primary investment objective of the Bitwise Avalanche ETF (BAVA) is to provide exposure to the value of Avalanche held by the Trust, less the expenses of its operations and other liabilities, by holding Avalanche and referencing the CME CF Avalanche–Dollar Reference Rate.
What is the management fee for the Bitwise Avalanche ETF and are there any waivers?
The Bitwise Avalanche ETF will charge a unitary management fee of 0.34% per annum of the Trust’s Avalanche holdings. The Sponsor has agreed to waive the entire Sponsor Fee on the first $500 million of Trust assets for a 1-month period commencing on the day the Shares are initially listed.
Who is the custodian for the Bitwise Avalanche ETF's Avalanche holdings?
Coinbase Custody Trust Company, LLC serves as the Avalanche Custodian for the Bitwise Avalanche ETF's Avalanche holdings, responsible for their secure safekeeping and maintaining segregated accounts.
How does the Bitwise Avalanche ETF plan to generate additional Avalanche?
The Bitwise Avalanche ETF has a secondary investment objective to derive additional Avalanche through staking. The Trust will stake some or all of the Avalanche held in its accounts, with the Sponsor selecting trusted staking agents to operate validators.
What is the role of the Seed Capital Investor in the Bitwise Avalanche ETF?
Bitwise Asset Management, Inc., the parent of the Sponsor, served as the Seed Capital Investor, purchasing $200 in Shares (8 Shares at $25 each) on October 22, 2025, which formed the basis for the initial audit.
What are the risks associated with investing in the Bitwise Avalanche ETF?
Investing in the Bitwise Avalanche ETF involves a high degree of risk, similar to direct investment in Avalanche. The filing explicitly states that Shares are 'speculative securities' and investors 'could lose your entire investment,' making it unsuitable for those not in a position to accept significant risk.
Is the Bitwise Avalanche ETF regulated under the Investment Company Act of 1940?
No, the Bitwise Avalanche ETF is not a fund registered or subject to regulation under the Investment Company Act of 1940. It is also not a commodity pool under the Commodity Exchange Act of 1936.
How are the Bitwise Avalanche ETF's Shares created and redeemed?
The Trust creates or redeems its Shares in blocks of 10,000 Shares (Baskets) based on the quantity of Avalanche attributable to each Share. Creation orders can be in Avalanche or U.S. dollars, while redemption orders can be in-kind Avalanche or cash proceeds, transacted with Authorized Participants.
What is Avalanche and how does it differ from traditional investments?
Avalanche is a decentralized digital asset, unlike stocks or bonds, which represent company ownership or debt. Ownership of Avalanche is reflected on a decentralized ledger, and it does not entitle holders to company profits or income streams, but can be used for transactions or converted to fiat currency.
When is the Bitwise Avalanche ETF expected to commence public sale?
The approximate date of commencement of proposed sale to the public for the Bitwise Avalanche ETF is 'as soon as practicable after the effective date of this Registration Statement,' which was filed on November 26, 2025.
Risk Factors
- Uncertainty in Digital Asset Regulation [high — regulatory]: The Trust and its underlying asset, Avalanche, are not regulated under the Investment Company Act of 1940 or the Commodity Exchange Act of 1936. This lack of specific regulatory framework creates uncertainty regarding future regulations that could impact the Trust's operations, the value of Avalanche, and the ability to offer the ETF.
- Volatility of Avalanche Prices [high — market]: The value of Avalanche is subject to extreme price volatility, influenced by market sentiment, technological developments, and regulatory news. The Trust's NAV will directly reflect this volatility, potentially leading to significant losses for investors.
- Reliance on Service Providers [medium — operational]: The Trust relies on various service providers, including Bitwise Investment Advisers, LLC (Sponsor), Coinbase Custody Trust Company, LLC (Custodian), and CF Benchmarks Ltd. (NAV calculation). The failure or misconduct of any of these providers could adversely affect the Trust's operations and the value of its assets.
- Staking Risks [medium — financial]: The secondary objective of deriving additional AVAX through staking introduces risks related to the staking process itself, including potential slashing penalties, validator downtime, and changes in staking reward mechanisms. These risks could reduce the expected yield from staking.
- Dependence on CME CF Avalanche–Dollar Reference Rate [medium — market]: The Trust's NAV is calculated using the CME CF Avalanche–Dollar Reference Rate. Any inaccuracies, manipulation, or cessation of this reference rate could lead to an incorrect NAV calculation and negatively impact investor confidence and the Trust's performance.
- Custody of Avalanche Assets [high — operational]: Coinbase Custody Trust Company, LLC is responsible for the secure safekeeping of the Trust's Avalanche. While a reputable custodian, any security breach or operational failure at the custodian could result in the loss of the Trust's underlying assets.
Industry Context
The digital asset ETF market is rapidly evolving, with increasing institutional interest in providing regulated exposure to cryptocurrencies like Avalanche. Competitors may offer similar products tracking different digital assets or employing different strategies. The industry faces ongoing challenges related to regulatory clarity, market volatility, and the security of digital asset custody.
Regulatory Implications
The Trust operates in a less regulated environment compared to traditional financial products, as it is not registered under the Investment Company Act of 1940 or the Commodity Exchange Act. This lack of specific oversight presents potential risks if regulatory frameworks evolve or if enforcement actions target similar products.
What Investors Should Do
- Review the fee structure carefully, including the management fee of 0.34% and the initial waiver period.
- Assess personal risk tolerance for highly volatile assets like Avalanche.
- Understand the risks associated with staking, as it's a secondary objective of the Trust.
- Monitor regulatory developments in the digital asset space.
Key Dates
- 2025-10-22: Seed Capital Investment — Bitwise Asset Management, Inc. invested $200, purchasing 8 Shares at $25 each, marking the initial funding for the Trust.
- 2025-11-20: Avalanche Market Cap Ranking — Avalanche was ranked 20th among over 19,000 digital assets, indicating its significant position in the cryptocurrency market at that time.
Glossary
- Net Asset Value (NAV)
- The per-share market value of a fund, calculated by subtracting liabilities from assets and dividing by the number of outstanding shares. (The Trust's NAV will be based on the value of its Avalanche holdings, less expenses, and will be calculated using the CME CF Avalanche–Dollar Reference Rate.)
- Sponsor
- The entity responsible for the overall management and administration of the Trust. (Bitwise Investment Advisers, LLC is the Sponsor and charges a management fee, with an initial waiver.)
- Custodian
- An institution that holds and safeguards financial assets on behalf of its clients. (Coinbase Custody Trust Company, LLC will serve as the Custodian for the Trust's Avalanche holdings.)
- Basket
- A block of creation units of ETF shares used by authorized participants to create or redeem ETF shares with the issuer. (Initial seed baskets totaling $2,500,000 are expected to be purchased to acquire Avalanche before listing.)
- Staking
- The process of actively participating in transaction validation (similar to mining) on a proof-of-stake blockchain network to earn rewards. (The Trust has a secondary objective to derive additional AVAX through staking, which carries its own set of risks and potential rewards.)
- CME CF Avalanche–Dollar Reference Rate
- A benchmark rate for the value of Avalanche against the US Dollar, calculated by CF Benchmarks Ltd. (This rate will be used by the Trust to establish its Net Asset Value (NAV).)
Year-Over-Year Comparison
This is the initial S-1/A filing for the Bitwise Avalanche ETF, so there is no prior filing to compare against. Key metrics such as revenue, net income, and margins are not applicable at this pre-listing stage. The filing establishes the initial seed capital of $200 and the planned initial seed basket purchase of $2,500,000.
Filing Stats: 4,384 words · 18 min read · ~15 pages · Grade level 15.4 · Accepted 2025-11-25 21:12:14
Key Financial Figures
- $500 million — ive the entire Sponsor Fee on the first $500 million of Trust assets. When the Trust creat
- $200 — eed Capital Investor agreed to purchase $200 in Shares on October 22, 2025, and on O
- $25 — ery of 8 Shares at a per-Share price of $25 (the “Seed Shares”). The $2
- $2,500,000 — chase the initial Baskets of Shares for $2,500,000, at a per-Share price of $25 for these
- $1.235 billion — uo; upon the earliest of (i) its having $1.235 billion or more in annual revenues, (ii) at lea
- $700 million — more in annual revenues, (ii) at least $700 million in market value of Shares being held by
- $1.0 billion — affiliates, (iii) its issuing more than $1.0 billion of non-convertible debt over a three-ye
Filing Documents
- ea0267008-s1a1_bitwise.htm (S-1/A) — 1241KB
- ea026700801ex3-3_bitwise.htm (EX-3.3) — 211KB
- ea026700801ex5-1_bitwise.htm (EX-5.1) — 10KB
- ea026700801ex8-1_bitwise.htm (EX-8.1) — 16KB
- ea026700801ex10-1_bitwise.htm (EX-10.1) — 27KB
- ea026700801ex10-2_bitwise.htm (EX-10.2) — 324KB
- ea026700801ex10-3_bitwise.htm (EX-10.3) — 70KB
- ea026700801ex10-4_bitwise.htm (EX-10.4) — 314KB
- ea026700801ex10-5_bitwise.htm (EX-10.5) — 23KB
- ea026700801ex10-6_bitwise.htm (EX-10.6) — 62KB
- ea026700801ex10-7_bitwise.htm (EX-10.7) — 15KB
- ea026700801ex10-8_bitwise.htm (EX-10.8) — 136KB
- ea026700801ex10-9_bitwise.htm (EX-10.9) — 114KB
- ea026700801ex10-10_bitwise.htm (EX-10.10) — 85KB
- ea026700801ex10-11_bitwise.htm (EX-10.11) — 189KB
- ea026700801ex10-12_bitwise.htm (EX-10.12) — 99KB
- ea026700801ex10-13_bitwise.htm (EX-10.13) — 71KB
- ea026700801ex23-1_bitwise.htm (EX-23.1) — 2KB
- ea026700801ex-fee_bitwise.htm (EX-FILING FEES) — 12KB
- image_001.jpg (GRAPHIC) — 9KB
- image_002.jpg (GRAPHIC) — 2KB
- ex5-1_001.jpg (GRAPHIC) — 12KB
- ex10-4_001.jpg (GRAPHIC) — 5KB
- ex10-5_001.jpg (GRAPHIC) — 3KB
- ex10-7_001.jpg (GRAPHIC) — 4KB
- ex10-8_001.jpg (GRAPHIC) — 7KB
- ex10-9_001.jpg (GRAPHIC) — 9KB
- ex10-12_001.jpg (GRAPHIC) — 25KB
- ex10-12_002.jpg (GRAPHIC) — 53KB
- ex10-12_003.jpg (GRAPHIC) — 25KB
- ex8-1_001.jpg (GRAPHIC) — 4KB
- 0001213900-25-115003.txt ( ) — 3350KB
- ea026700801ex-fee_bitwise_htm.xml (XML) — 4KB
Risk Factors
Risk Factors 12 AVALANCHE, AVALANCHE MARKET AND REGULATION OF AVALANCHE 66 THE TRUST AND Avalanche PRICES 73 staking 79 Calculation of NAV 81 ADDITIONAL INFORMATION ABOUT THE TRUST 84 The Trust’s Service Providers 89 Custody of the Trust’s Assets 91 THE PRIME EXECUTION AGENT AND the TRADE CREDIT LENDER 93 Form of Shares 100 Transfer of Shares 100 SEED CAPITAL INVESTOR 101 Plan of Distribution 101 Creation and Redemption of Shares 102
Use of Proceeds
Use of Proceeds 109 109 Conflicts of Interest 109 FIDUCIARY AND REGULATORY DUTIES AND OBLIGATIONS OF THE SPONSOR 111 Liability and Indemnification 112 Provisions of Law 114 Management; Voting by Shareholders 115 Meetings 115 Books and Records 115 115 Fiscal Year 115 GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION 116 Legal Matters 116 Experts 116 Material Contracts 116 UNITED STATES FEDERAL INCOME TAX CONSEQUENCES 124 Purchases By Employee Benefit Plans 130 Information You Should Know 131 SUMMARY OF PROMOTIONAL AND SALES MATERIAL 132 Intellectual Property 132 Where You Can Find More Information 132 Privacy Policy 133 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM F-1 F-2 This Prospectus contains information you should consider when making an investment decision about the Shares. You may rely on the information contained in this Prospectus. The Trust and the Sponsor have not authorized any person to provide you with different information and, if anyone provides you with different or inconsistent information, you should not rely on it. This Prospectus is not an offer to sell the Shares in any jurisdiction where the offer or sale of the Shares is not permitted. The Shares are not registered for public sale in any jurisdiction other than the United States. Until _____________, 2025 (25 days after the date of this prospectus), all dealers effecting transactions in the Shares, whether or not participating in this distribution, may be required to deliver a prospectus. This requirement is in addition to the obligations of dealers to deliver a prospectus when acting as underwriters and with respect to unsold allotments or subscriptions. The Sponsor first intends to use this prospectus on _____________, 2025. i
FORWARD-LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS This Prospectus includes “forward-looking by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included in this Prospectus that address activities, events, or developments that will or may occur in the future, including such matters as movements in the digital asset markets, the Trust’s operations, the Sponsor’s plans, and references to the Trust’s future success and other similar matters, are forward-looking assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions, and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions is subject to a number of risks and uncertainties, including: the special considerations discussed in this Prospectus; general economic, market and business conditions; technology developments regarding the use of Avalanche and other digital assets, including the systems used by the Sponsor and the Trust’s custodian in their provision of services to the Trust; changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies; and other world economic and political developments, including, without limitation, global pandemics and the societal and go