VanEck has officially asked U.S. regulators for permission to list an exchange-traded fund holding BNB, the native token of Binance's BNB Chain, marking the first such filing for this cryptocurrency in the United States.
What to Know:
- VanEck filed with the SEC on May 2 under Form S-1 to create the first U.S.-registered BNB ETF.
- The fund may include staking capabilities to generate additional BNB rewards for investors.
- BNB is currently the fifth-largest cryptocurrency with a market cap of approximately $84 billion.
The Pioneering Filing
The asset management firm submitted its registration statement to the Securities and Exchange Commission on May 2, proposing an ETF designed to directly track BNB's price through spot token holdings. The preliminary prospectus indicates that the ETF may feature staking capabilities to allow investors to earn additional BNB rewards, pending regulatory approval from the listing exchange.
"The ETF is designed to accumulate spot BNB tokens and may, from time to time, stake a portion of the fund's assets through one or more trusted staking providers," according to the S-1 prospectus. This staking feature could potentially generate passive income for investors, though its implementation would require separate approval.
The filing represents a significant step forward for cryptocurrency investment products, expanding beyond the Bitcoin and Ethereum ETFs that launched earlier this year. It follows VanEck's preliminary registration of a Delaware trust entity for the BNB ETF in March, establishing the legal framework for the fund.
With a market capitalization of approximately $84 billion, BNB currently ranks as the fifth-largest cryptocurrency globally. The token trades around $608 as of May 5, showing minimal price movement over recent days. BNB stakers currently earn yields of roughly 2.5%, according to data from Stakingrewards.com.
Expanding Cryptocurrency ETF Landscape
VanEck has established itself as a pioneer in cryptocurrency investment products. The company was among the first to propose a futures-based Bitcoin ETF in 2017 and successfully launched spot Bitcoin and Ethereum ETFs following hard-won SEC approvals last year.
This BNB filing expands VanEck's growing portfolio of crypto-focused ETFs. BNB becomes the fifth cryptocurrency—after Bitcoin, Ether, Solana, and Avalanche—to have a standalone SEC registration initiated by VanEck. The company has filed for these additional cryptocurrency ETFs over the past few months, positioning itself at the forefront of bringing digital assets into traditional finance.
Binance's BNB Chain has established itself as one of the most widely used blockchain networks, with a total value locked of nearly $6 billion according to data from DefiLlama. The blockchain supports numerous decentralized applications and transaction processing, competing with other popular networks like Ethereum and Solana.
Bitcoin's "Spillover" Effect on Altcoins
The filing arrives just days after Binance co-founder Changpeng "CZ" Zhao commented on the potential for Bitcoin ETF popularity to benefit alternative cryptocurrencies. "This cycle so far has been the ETFs. And it's almost all Bitcoin. Ether hasn't had as much success but Bitcoin success will spill over to the others eventually," Zhao reportedly said during the recent Token2049 conference in Dubai.
Since their January 2024 launch, spot Bitcoin ETFs have attracted net inflows exceeding $40 billion, according to data from Farside Investors. This substantial investor interest has fueled speculation about similar products for additional cryptocurrencies.
The BNB ETF application joins numerous other cryptocurrency ETF proposals submitted since U.S. President Donald Trump took office in January. These include plans for ETFs holding tokens from various blockchain networks like Solana, as well as popular memecoins such as Dogecoin.
The SEC has acknowledged dozens of cryptocurrency ETF proposals in recent months, though approval timelines remain uncertain. Regulatory decisions will likely depend on each token's specific characteristics and the evolving cryptocurrency regulatory framework under the new administration.
A Growing Trend
VanEck's BNB ETF filing represents the latest development in the rapid expansion of cryptocurrency investment products. If approved, it would provide traditional investors with regulated exposure to one of the largest cryptocurrencies without requiring direct token ownership or cryptocurrency exchange accounts.
The proposed ETF would join a growing ecosystem of cryptocurrency financial products gradually bringing digital assets into mainstream investment portfolios. The success of Bitcoin ETFs has demonstrated significant investor appetite for regulated cryptocurrency exposure, potentially paving the way for additional products covering the broader digital asset market.