REX Shares, together with Osprey Funds, has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to launch a new cryptocurrency exchange-traded fund (ETF) focused on BNB.
The proposed ETF aims to let investors directly track the price of BNB, which is the main cryptocurrency of the BNB Chain created by Binance. This would be the first U.S. ETF to offer both direct exposure to BNB and staking rewards.
According to the N-1A filing, the ETF would trade on the Cboe BZX Exchange, store BNB with a crypto custodian, and may allow third-party validators to handle staking, including some with small ties to REX affiliates.
A large portion of BNB in the fund could be staked to earn extra rewards, while the fund will ensure liquidity by keeping most of its assets easily tradable. It will limit illiquid holdings to 15%, since BNB takes seven days to unbond.
BNB is utilized for transaction fees, voting for governance, and securing the BNB blockchain using delegated proof-of-stake. While the network is decentralized, Binance retains strong control.
Other firms, such as Grayscale, VanEck, and Franklin Templeton, are likewise applying for approval of spot crypto ETFs, including funds for XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot. The SEC should be more receptive to crypto ETFs under the present administration.
Background and Launch Outlook
REX and Osprey already launched a Solana staking ETF in the U.S. So far, the Solana staking ETF has attracted $161.7 million in two months, much less than U.S. Bitcoin ($5.1B) and Ethereum ($9.1B) ETFs in the same period.
The BNB ETF will be structured under the Investment Company Act of 1940 (“40 Act”), allowing tax-efficient staking strategies. It will hold BNB directly and through a Cayman subsidiary, unlike physically-backed crypto trusts under the ’33 Act, while following U.S. rules.
This isn’t the first BNB staking ETF. VanEck proposed a similar fund in May under the traditional ’33 Act. REX-Osprey’s ETF could be approved as soon as November 9 or 10, following the same approval path used for their Solana ETF.
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