Asset manager VanEck is making strides to launch the first Binance Coin (BNB) ETF in the US

Asset manager VanEck is making progress in its effort to launch the first Binance Coin (BNB) ETF in the US. As part of the move, the investment giant filed the S1 form with the US Securities and Exchange Commission (SEC).

This signals the beginning of the legal process to introduce a trust that will hold Binance Coins and be sold as an ETF on a major stock exchange.

The S1 filing, dated August 24, 2023, marks a significant step toward launching a Binance Coin ETF. It also follows VanEck’s registration in Delaware to launch a BNB exchange-traded fund in early April 2025.

If approved, the trust’s BNB holdings can be utilized to generate staking rewards, additional BNB, or other forms of income. These will be distributed to the ETF’s unitholders at least quarterly.

Moreover, the trust’s income may also be derived from interest, dividends, or capital gains realized by the trust’s direct or indirect investments in other securities.

While no specific exchange was mentioned in the S1 filing, it’s likely that the BNB ETF will be listed on the New York Stock Exchange (NYSE) or Nasdaq.

The initiative is significant as it would be the first US-based ETF focused on Binance Coin (BNB). Although BNB-related products like the 21Shares Binance BNB ETP are available, they are structured as exchange-traded products (ETPs) and are not based in the US.

Earlier in March, VanEck filed an S-1 form, seeking approval for an Avalanche ETF.

The move comes amid growing interest in altcoin ETFs as investors look for diversified exposure to cryptocurrencies beyond Bitcoin and Ethereum. Several firms have already applied to launch spot Bitcoin ETFs, and the SEC is expected to make a decision on these applications soon.

As of press time, BNB is trading at $593.17, down by 0.3% over the past 24 hours. The token has also seen declines of 2.2% and 0.69% over the past week and month, respectively.

However, VanEck’s move to launch a BNB ETF has sparked optimism for the token’s price. There is also positive sentiment within the community, which is evident in the increasing trading volume. Over the past 24 hours, the trading volume has increased by almost 15% to $1.41 billion.

If approved, VanEck’s potential launch of the BNB ETF could positively impact the token’s price through increased demand and better investment options. The anticipated surge in demand is expected to trigger a surge in BNB price.

Moreover, the existing positive sentiment and rising trading volume may propel BNB’s price upward, potentially reversing its current negative trend.