Asset management firm VanEck has applied to the U.S. Securities and Exchange Commission to launch the first exchange-traded fund tracking Binance Coin (BNB).
The fund, which would invest in the spot price of BNB and offer a snapshot of its performance, is designed to provide traditional investors with a convenient way to gain exposure to the cryptocurrency without needing to buy or store it themselves. It is the latest initiative to expand the range of cryptocurrency investment tools within regulated markets.
The application, viewed by Blockworks, reveals an interesting angle: the possibility of staking a portion of the managed assets. This practice involves locking up cryptocurrencies to help secure and operate a blockchain network, with participants earning rewards for their contribution.
If approved, the ETF could become the first in the U.S. to offer additional income through staking.
The proposal comes amid observations of a more flexible attitude among U.S. regulators toward the crypto industry and their willingness to consider new types of financial products.
During the previous administration of Gary Gensler, the SEC typically steered clear of authorizing financial products with staking functions, even in the case of Ethereum ETFs. However, with Paul Atkins now leading the agency, some firms within the industry see a more favorable environment for proposing these initiatives.
Created in 2017 by Binance, BNB currently ranks as the fifth-largest cryptocurrency by market capitalization, boasting a market value of nearly $84 billion. In addition to serving as a payment method for fees on the exchange, this token fuels various decentralized applications and NFT marketplaces that are built on the BNB Chain. Its price today is about $604 per unit, according to CoinMarketCap.
The approval of VanEck’s fund would mark a significant step in integrating BNB into institutional financial circuits that, until now, have remained largely inaccessible to this class of investors.
To move forward, VanEck must submit Form 8A to the SEC, which will trigger a formal review period and set deadlines for a decision on the application.
