REX and Osprey Seek SEC Approval for BNB ETF With Staking Yield
Asset managers REX Shares and Osprey Funds have submitted a filing to the US Securities and Exchange Commission (SEC) for an innovative exchange-traded fund (ETF) designed to offer exposure to BNB, the native token of the Binance ecosystem, alongside access to its staking yield. This move reflects a growing interest among asset managers to expand crypto ETF offerings with yield-generating features.
Details of the Proposed BNB ETF
The proposed REX-Osprey BNB + Staking ETF would allocate at least 80% of its assets to BNB, either by directly holding the token or through investment in a Cayman Islands subsidiary that tracks BNB. The rest of the fund's assets may be allocated to other ETFs or exchange-traded products that provide additional BNB exposure.
The ETF aims to capture BNB staking yields, which currently range from 1.5% to 3% annually on the Binance Chain. The chain relies on a proof-of-staked-authority consensus, with staking rewards accruing to network validators. If approved, the fund intends to stake held BNB as long as illiquid assets do not exceed 15% of its portfolio, a regulatory guideline ensuring investor redemption capability.
Comparison With Existing Offers
The new ETF proposal differs from Osprey Funds previously launched BNB Chain Trust, which targets accredited investors with a $10,000 minimum investment. The trust also stakes BNB but is structured as a private placement. Anchorage Digital Bank will serve as custodian for the BNB held by the REX-Osprey ETF, including related holdings and liquid staking tokens.
This filing follows a similar move by asset manager VanEck, which has also proposed a US-based BNB ETF featuring staking yield. If approved, these would be the first BNB funds available to US investors seeking exposure and yield from the Binance token.
Growing Crypto ETF Market
The filing comes amid increased activity in the US crypto ETF sector. According to industry data, investor trading in US crypto ETFs has intensified over recent months. Bitcoin ETFs recorded inflows of $3 billion in April and $6 billion in July, while Ether ETFs drew $5.4 billion in July and $3.7 billion in August alone. Recent weeks have also seen record trading volumes for both Bitcoin and Ether ETFs in the US market.
Market analysts note that interest in so-called 'altcoin season' remains strong, though broader adoption may depend on further approvals of altcoin-focused ETFs. Other tokens such as Solana, Official Trump, and Sui are also awaiting decisions from the SEC for ETF-related filings.
- REX-Osprey proposes a BNB ETF with staking yield in the US.
- The ETF would invest primarily in BNB and capture its staking rewards.
- This continues a trend of new crypto ETF products coming to US markets.
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