TL;DR
- REX Shares and Osprey Funds submitted a proposal to the SEC to launch the first U.S. BNB ETF with staking rewards.
- The ETF aims to provide direct exposure to the token’s price while generating yields by delegating tokens to validators.
- The structure includes a Cayman Islands subsidiary for greater tax efficiency and caps illiquid assets at 15%.
REX Shares and Osprey Funds are seeking to launch the first U.S.-listed exchange-traded fund tied directly to BNB that also incorporates staking rewards.
The proposal was filed with the Securities and Exchange Commission under the Investment Company Act of 1940, the same framework that enabled the launch of the Solana ETF in July. Analysts believe this path could speed up approval and allow trading to begin on November 9.
The fund is designed to give investors direct exposure to BNB’s price while also earning yield through token delegation to network validators. According to the filing, custody will be handled by an external entity that has not yet been disclosed, and share creation and redemption will take place in cash. The plan also includes the possibility of using liquid staking protocols to combine access to rewards with liquidity.
The structure relies on a Cayman Islands subsidiary to optimize taxation of staking income and maintain compliance with regulations governing registered investment companies in the U.S. The fund will restrict illiquid assets to a maximum of 15%, taking into account BNB’s seven-day unbonding period before staked tokens can be withdrawn.
Binance Will Retain Power Over BNB
The token is used to pay transaction fees, participate in governance, and secure transaction validation on the network. Although BNB Chain operates under a delegated proof-of-stake system, the SEC filing notes that Binance will continue to exert significant influence over validator operations and governance decisions.
Other firms including Bitwise, Grayscale, Franklin Templeton, and VanEck have also filed for ETFs covering other cryptocurrencies such as XRP, Cardano, Dogecoin, Avalanche, Hedera, Polkadot, and Litecoin. The political context has boosted expectations of approval, as the Trump administration has shown a more favorable stance toward the crypto industry compared to the previous administration.
The closest precedent is the Solana ETF launched in July, which combines direct token holdings with staking participation. That product attracted $161.7 million in its first two months, far below the billions raised by Bitcoin and Ethereum ETFs in the same period
