Global asset manager VanEck has filed for a new exchange-traded fund (ETF) that would directly track Binance Coin (BNB), the native cryptocurrency of the BNB Chain. The filing, submitted to the U.S. Securities and Exchange Commission (SEC) on May 2, outlines plans to potentially incorporate staking rewards into the fund’s structure a first among proposed altcoin ETFs.
VanEck BNB ETF Aims to Mirror BNB Price Performance
The proposed VanEck BNB ETF would hold physical BNB tokens, allowing investors to gain exposure to the price performance of the asset without directly purchasing it. According to the SEC filing, the ETF’s primary objective is to reflect the value of BNB, minus operational expenses.
The ETF would calculate its share value based on an index maintained by MarketVector Indexes GmbH, a VanEck-owned data firm specializing in crypto and digital asset indexing. A ticker symbol for the fund has not yet been disclosed, and the ETF remains subject to regulatory approval before listing on a U.S. stock exchange.
Staking Rewards Under Consideration
Uniquely, the ETF includes a provision for staking a mechanism through which BNB holders can lock up tokens to support network operations and earn rewards. While staking is not active in the initial proposal, the filing states that if regulatory clearance is granted, a portion of the fund’s BNB may be staked in the future.
“If the exchange receives the necessary regulatory approval… the trust would receive certain staking rewards of BNB, which may be treated as income,” the filing reads.
This marks a potential innovation in ETF design, offering investors passive yield opportunities in addition to price exposure aligning traditional finance more closely with the dynamics of proof-of-stake cryptocurrencies.
BNB Price and Ecosystem Metrics Show Resilience
Following the announcement, BNB’s price held relatively steady, trading at $592 as of press time down 0.4% on the day and still 25% below its December 2024 all-time high.
Despite muted price action, on-chain activity remains strong. As reported by crypto.news, BNB Chain active addresses rose 13% in the past week, reaching 5.2 million, which is more than double Ethereum’s 2 million in the same period. Meanwhile, staking yields on BNB have increased to 6.2%, according to StakingRewards data.
Growing Demand for Altcoin ETFs
VanEck’s BNB ETF proposal reflects growing institutional interest in altcoin exposure beyond Bitcoin and Ethereum. The asset manager has previously filed for ETFs tied to Ethereum and Solana, signaling a broader shift in investor appetite toward diversified digital asset products.
If approved, the VanEck BNB ETF could pave the way for more staking-enabled ETFs a move that would bridge DeFi functionalities with traditional investment products.
