In a significant move within the cryptocurrency investment landscape, VanEck has formally registered a new entity in Delaware aimed at creating an exchange-traded fund (ETF) tethered to the Binance-related BNB cryptocurrency. This effort marks a potential milestone for BNB as it seeks to bridge the gap between digital assets and traditional financial products.
On March 31, VanEck submitted public records to the official Delaware state website under the name VanEck BNB ETF. Filing number 10148820 identifies the entity as a trust corporate service company, signaling a possible future for a BNB ETF in the United States.
Reports on social media have indicated that VanEck is the first to propose a BNB ETF in the U.S., which could signal the expansion of the BNB Chain—formerly known as Binance Chain—into mainstream financial avenues.
Comparative Landscape: BNB ETP in Europe
While VanEck’s initiative represents a pioneering effort in the U.S., similar products have already carved out a market presence in Europe. The prominent crypto asset manager 21Shares launched a BNB exchange-traded product (ETP) in Switzerland in October 2019.
Data from TradingView reveals that the 21Shares BNB ETP holds approximately $15 million in assets under management (AUM), representing a modest 0.3% share of Switzerland’s total cryptocurrency AUM of $5.3 billion as of late March, as noted by CoinShares.
However, it’s worth mentioning that this product experienced a sharp decline in fund flows over the past year, amounting to €537 million (approximately $580 million).
The Essence of BNB
Initially launched by Binance in July 2017 as an ERC-20 token on the Ethereum blockchain, BNB was designed to incentivize trading on the Binance platform, offering reduced fees for transactions. Today, BNB is recognized as the native digital asset of the BNB Chain, a community-driven and decentralized blockchain ecosystem for various Web3 applications.
Currently, BNB ranks as the fifth-largest cryptocurrency by market capitalization, valued at approximately $88 billion, according to CoinGecko.
Industry Trends: The Surge of Altcoin ETF Filings
The filing for the VanEck BNB ETF is part of a broader trend, highlighting an increase in altcoin ETF proposals in the U.S. following Donald Trump’s recent presidential inauguration. In a similar vein, VanEck has also registered for an ETF tracking Avalanche (AVAX) and submitted various other altcoin ETF applications.
Furthermore, numerous ETF issuers are vying for approval of an XRP ETF with the Securities and Exchange Commission (SEC), with at least nine firms having submitted standalone filings as of mid-March.
As the financial landscape continues to evolve, the advent of a BNB ETF could represent a pivotal shift towards the acceptance of cryptocurrencies in traditional investment markets, opening new avenues for both investors and the digital asset space.
