Historic BNB ETF Filing: VanEck Seeks First US Approval

Are you watching the evolving landscape of crypto investments? A significant development just occurred that could pave the way for new opportunities. Asset manager VanEck has made a move that marks a potential turning point for altcoin investments in the United States, filing for the first-ever US spot BNB ETF.

What VanEck’s Historic BNB ETF Filing Means

In a regulatory filing, VanEck formally requested permission from US regulators to list an exchange-traded fund designed to hold spot Binance Coin (BNB), the native token of Binance’s BNB Chain. This action is notable because it’s the first time an asset manager has attempted to list an ETF specifically for BNB in the United States.

The proposed ETF, detailed in its S-1 prospectus, intends to primarily accumulate spot BNB tokens. Interestingly, the filing also includes a provision that the fund “may, from time to time, stake a portion of the [fund’s] assets through one or more trusted staking providers.” This staking feature could potentially offer additional yield to ETF holders, a common practice among long-term crypto holders.

BNB is a major player in the crypto market, boasting a market capitalization currently around $84 billion. The BNB Chain itself is a widely used smart contract platform, with a total value locked (TVL) nearing $6 billion, highlighting its significant ecosystem activity.

Following the Bitcoin Trend: The Rise of the Cryptocurrency ETF

This filing doesn’t happen in isolation. It follows the immense success seen by spot Bitcoin ETFs since their launch in January 2024, which have attracted over $40 billion in net inflows. Binance co-founder Changpeng “CZ” Zhao recently commented on this trend, suggesting that the popularity and capital flowing into Bitcoin ETFs would eventually “spill over” into other cryptocurrencies.

VanEck’s application is part of a broader trend. Over the past few months, there has been a noticeable increase in filings for various altcoin ETF products. Since early 2024, the US Securities and Exchange Commission (SEC) has acknowledged numerous proposals for cryptocurrency ETFs holding tokens beyond just Bitcoin and Ethereum.

These filings include proposals for ETFs tracking native layer-1 tokens like Solana (SOL) and Avalanche (AVAX), and even memecoins such as Dogecoin (DOGE). VanEck itself has been active in this space, having filed for ETFs holding Solana and Avalanche recently. This wave of filings indicates growing interest from traditional finance in offering regulated investment products for a wider range of digital assets.

Key Takeaways from the VanEck Binance Coin Filing:

• It’s the first attempt to list a spot BNB ETF in the US.
• The ETF plans to hold spot BNB and potentially engage in staking.
• This filing aligns with predictions of Bitcoin ETF success spilling over into altcoins.
• It’s part of a larger trend of asset managers filing for various altcoin ETFs.
• BNB is a significant asset by market cap and powers a popular blockchain network.

While this filing is just the initial step in a lengthy regulatory process, it signifies increasing institutional interest and the potential normalization of investing in a broader range of cryptocurrencies through traditional financial vehicles like ETFs. The outcome of this and other altcoin ETF applications will be closely watched by investors and the crypto industry alike.