VanEck Avalanche ETF is a passive investment vehicle that holds Avalanche (AVAX) digital tokens in segregated custodial accounts and allows investors to gain exposure to AVAX through shares traded on Nasdaq. The fund earns revenue through a sponsor fee charged as a percentage of assets under management, supplemented by staking rewards generated by delegating AVAX tokens to network validators through a third-party staking provider. The fund's shares are created and redeemed by authorized broker-dealers and institutional participants in large baskets, with secondary market pricing determined by supply and demand for AVAX tokens traded on major cryptocurrency exchanges.