VanEck Bets Big on BNB: Files for First-Ever US Spot ETF

Wall Street’s crypto gambit takes another leap—VanEck just lobbed a regulatory grenade with its SEC filing for a BNB exchange-traded fund. The move shocks exactly nobody who’s watched ETFs become finance’s hottest trend since ’low-fee’ index funds.

Why this matters: Binance Coin joins the institutionalization parade. After Bitcoin and Ethereum ETFs dominated 2024’s crypto narrative, VanEck’s play signals BNB’s creeping legitimacy—or at least its arbitrage potential.

The cynical take: Nothing cures regulatory skepticism like the scent of fresh management fees. The SEC hasn’t approved a non-BTC/ETH crypto ETF yet, but hey—there’s a first time for everything (except maybe holding bankers accountable).

VanEck uses staking to differentiate its ETF

What distinguishes VanEck’s application is the inclusion of a staking feature, giving the fund the potential to participate in BNB staking, which is pending regulatory approval.

Staking involves locking up digital assets to help secure and operate a blockchain network, with participants typically earning rewards in the form of additional tokens.

VanEck aims to give the contributors’ rewards to the ETF investors. According to the filing, the fund would generate “other income” beyond the staking rewards.

This is a bit of a gamble, particularly because the SEC, under previous chair Gary Gensler, fiercely opposed ETFs that provide staking functions. That firm stance was one of the reasons spot Ethereum ETFs were approved without staking included.

But the regulatory climate may be shifting. The SEC is now headed by Paul Atkins, which some in the industry believe could mean a friendlier stance on crypto.

As recently as last month, Grayscale updated its Ethereum ETF filing to account for staking. Hedge fund Canary Capital also proposed a TRON ETF, which involves staking.

None of these have been given the green light just yet. The SEC has not provided specific time frames and has recently postponed multiple ETF decisions.

VanEck targets institutions with BNB ETF

If successful, VanEck’s BNB ETF could mean a huge step forward for BNB and the wider cryptocurrency market.

ETFs are popular investment options in the regular stock market. They make it easier for institutional and everyday investors to access assets like cryptocurrencies through a regulated and familiar format.

BNB is already heavily used across the crypto landscape, being accepted to pay trading fees on the Binance exchange and serving as the currency of choice for decentralized finance (DeFi) applications and non-fungible token (NFT) platforms built on the BNB Chain. 

However, it has been able to tap only a narrow set of traditional financial pipes, such as exchange-traded funds. An ETF by VanEck could enhance that.

It’s more than just a little easier access. If they’re permitted to stake, it might also give traditional investors a way to earn passive income with crypto — something that was previously exclusive to the crypto faithful.

To advance the process, VanEck must also submit a form 19b-4. This step initiates an official review by the SEC and establishes a time frame for a decision. The ETF application is basically in limbo until then.

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