VanEck Drops First-Ever BNB ETF Bomb on US Regulators—Crypto’s Next Institutional Play?

Wall Street’s crypto incursion hits overdrive as VanEck files paperwork for a Binance Coin ETF—just as the SEC runs out of reasons to say no.

The move signals institutional appetite for altcoins beyond Bitcoin and Ethereum, though skeptics whisper ’late-stage desperation play’ as TradFi scrambles for relevance in DeFi’s shadow.

Bonus jab: Nothing says ’mature asset class’ like hedge funds begging to hold bags for retail.

Staking included

According to the preliminary prospectus, the ETF’s objective is to reflect the price of BNB, minus operational expenses.

The fund will hold actual BNB tokens in custody, with values derived from prices on the top five trading platforms. The index provider, MarketVector Indexes, will calculate the index based on those platform prices.

VanEck also disclosed the potential for the ETF to participate in staking, subject to regulatory approval.

Under such a framework, the fund could earn additional BNB through trusted staking providers, possibly including VanEck affiliates, though staking rewards would be treated as income for the trust.

However, the ETF will not claim any forked assets, airdrops, or other incidental rights that may arise.

Redemptions

The ETF will issue and redeem shares only in large blocks, referred to as “Baskets,” to authorized financial firms, using either cash or in-kind transfers of BNB. Retail investors will be able to trade shares on the secondary market, where prices may fluctuate based on demand and the value of the underlying assets.

The filing noted that the trust is not registered under the Investment Company Act of 1940 and is not considered a commodity pool, placing it outside the CFTC’s regulatory scope. It is also not an investment adviser under the Advisers Act.

Seed capital for the ETF has already been provided, with a private investor initially purchasing “Seed Shares” and later exchanging them for “Seed Creation Baskets” of ETF shares, priced according to the index value of BNB at the time.

VanEck cautioned that the ETF is speculative and could carry high risks, including the possibility of total loss due to BNB’s volatile nature. Additionally, the shares will not be insured by the FDIC or any other government agency.