VanEck Avalanche ETF

What they do

The Trust owns AVAX held by custodians (Anchorage Digital Bank N.A. and Coinbase Custody Trust Company, LLC) and issues shares in 25,000-share baskets to Authorized Participants, accepting cash or AVAX. It does not actively trade; it passively tracks AVAX price and may stake a portion of AVAX to earn rewards, subject to Sponsor discretion on legal/tax risk. The Sponsor, VanEck Digital Assets, LLC, manages the Trust; State Street serves as administrator, transfer agent, and cash custodian.

Revenue drivers

• Seed Creation Baskets — The primary capital contribution: on December 22, 2025, the Seed Capital Investor purchased 100,000 shares at $25.00 per share, providing $2.5 million in proceeds, representing 206,019.90 AVAX.
• Sponsor Fee — The Trust pays the Sponsor a fee (accrued daily) based on NAV; this is a primary expense and revenue source for the Sponsor, effectively the Trust's cost of operations.
• Staking rewards — The Trust may stake a portion of its AVAX to generate rewards, which contribute to NAV and are part of the investment objective, but the Sponsor has discretion regarding staking due to regulatory/tax risks.

Recent performance

As of June 30, 2026, total assets were $11.6 million and total liabilities were $5,720. At fiscal year-end December 31, 2025, the Trust's NAV was $2,517,562 with 100,000 shares outstanding. The 10-Q for the three months ended June 30, 2026 shows NAV increased, but specific figures are not provided in the excerpts. The Trust's performance is driven primarily by AVAX price movements and any staking rewards.

Strategy

The Trust is a passive vehicle with no active management or speculative trading. Its stated strategy is to hold AVAX and reflect its price plus staking rewards, less operating expenses, while qualifying as a grantor trust. It sells and redeems shares only in baskets to Authorized Participants, and may sell AVAX to cover Sponsor fees and expenses. The Sponsor has exclusive authority to determine NAV and has delegated daily calculation to the Administrator.

Risks

• AVAX Price Volatility — AVAX has experienced extreme price swings and may decline significantly, causing the Shares to lose all or substantially all of their value.
• Digital Asset Market Contagion — Bankruptcies of major digital asset firms (e.g., FTX, Celsius, Voyager) have caused loss of confidence and negative publicity that could depress AVAX prices and hurt the Trust.
• Staking Regulatory Risk — The Sponsor may limit or cease staking if it determines that staking could jeopardize the Trust's grantor trust tax status or create regulatory issues, reducing potential rewards.
• Custody Risk — The Trust relies on third-party custodians to hold its AVAX; if a custodian fails or suffers a security breach, the Trust's assets could be lost or become inaccessible.

Outlook

The Trust's forward-looking statements indicate that actual results may differ materially due to market conditions, regulatory changes, and economic developments. Management does not anticipate material changes to liquidity needs, as the Sponsor assumes most operating expenses and the Trust's only liquidity source is selling AVAX. There are no known trends or events that management expects to alter liquidity requirements.