VanEck Has Filed to List the First Spot BNB ETF — and It Comes with a Game-Changing Feature: Staking

Investment firm VanEck has filed for a spot exchange-traded fund (ETF) that would track the price of Binance’s (CRYPTO: BNB) native token, providing traditional investors with a new way to gain exposure to the fourth-largest cryptocurrency.

Here are five things to know about the fund and its implications.

1. The First U.S. Fund To Offer Exposure To BNB

The fund, which would be called the VanEck Antitrust Blockchain ETF and is being applied for approval from the U.S. Securities and Exchange Commission, would track the price of BNB and be invested in the token.

This is in contrast to the Bitcoin and ether futures ETFs that have already been approved by the SEC. No spot crypto ETFs have yet been cleared by the SEC.

The fund would allow institutional and retirement investors, as well as accredited traders, to gain exposure to BNB in a manner that complies with U.S. regulations.

Investors would not need to create an account on Binance or handle crypto wallets to invest in the fund.

2. The Fund Would Pay Out Staking Rewards

The ETF proposal includes an interesting twist — it would also allow the fund to engage in staking activities permitted under applicable law to earn passive income.

This is a unique addition, as most ETFs do not generate yield through traditional investing methods.

The fund would use any staking rewards to further increase the fund’s net asset value (NAV), which could be a game-changer for ETF structures.

3. SEC Is Currently Reviewing Several Ethereum ETF Applications

The SEC is currently reviewing several applications for a spot ether ETF, some of which also include a staking component.

Many analysts believe that the approval of an ether ETF, especially one with staking capabilities, would set a precedent for the approval of other crypto ETFs, such as the BNB ETF.

The success or failure of the ether ETF applications could have a direct impact on the fate of VanEck’s BNB ETF filing.

4. Why BNB Is A Logical Next Step For Institutional Investors

The BNB Smart Chain is one of the most active blockchain ecosystems, supporting a wide range of decentralized applications (dApps), DeFi platforms, and NFTs.

It has also seen strong growth in recent years, fueled in part by the Binance exchange’s expansion into new markets and services.

Moreover, BNB has a deflationary tokenomic model, with a portion of exchange fees used for token burns, leading to a gradual reduction in the circulating supply of BNB over time.

Finally, BNB has several real-world use cases, both within the Binance ecosystem and beyond. For instance, it is used to pay for gas fees on the BNB Chain, a rapidly growing blockchain network developed by Binance.

5. A Major Milestone In The Evolution Of Crypto ETFs

The approval of VanEck’s ETF could open the door for more altcoin-based ETFs in the U.S., allowing investors to diversify their portfolios beyond Bitcoin and ether.

It would also mark a significant step forward in the regulatory landscape surrounding crypto ETFs, particularly with the inclusion of staking.

Traditional ETFs have trillions of dollars in assets under management, and even a small allocation to BNB could create substantial demand for the token.