REX and Osprey File for First U.S. Spot BNB Staking ETF

REX Shares, in partnership with Osprey Funds, is looking to launch the first U.S. exchange-traded fund (ETF) tied to BNB, the native token of the BNB Chain. The two firms filed an N-1A registration statement with the U.S. Securities and Exchange Commission (SEC) on August 26, asking for approval.

Their plan stands out because the proposed fund includes staking, letting investors earn from both BNB’s price and its yield.

A Fund Designed for Direct BNB Exposure

According to the filing, the ETF would trade on the Cboe BZX Exchange and hold its BNB with a crypto custodian that has not yet been named. Unlike traditional ETFs that only mirror the price of an asset, this fund aims to go further. It plans to hold BNB directly and stake much of it on the BNB Chain. 

To keep investor liquidity intact, the managers suggest using cash-based creations and redemptions rather than in-kind transfers of tokens. They also leave the door open to liquid staking protocols, which could allow the fund to capture yield while still letting investors trade freely.

Furthermore, the filing also shows caution. BNB has a mandatory seven-day unbonding period when tokens are unstaked. As a result, the fund promises to keep at least 85% of its assets liquid. That safeguard is meant to avoid investor lockups in volatile markets.

REX and Osprey Test Staking Model With Solana ETF

Staking rewards, normally earned by blockchain validators, would flow back into the fund, potentially lifting returns for shareholders. 

REX and Osprey already tested this model. In July, the firms launched a Solana ETF under the 1940 Act, allowing direct SOL holdings with staking. The fund raised $161.7 million in two months, far less than Bitcoin and Ethereum ETFs.

The proposed BNB fund uses the same model, holding BNB directly and through a Cayman unit for tax efficiency. This is to show regulators that staking can work within a controlled framework.

Nevertheless, the REX-Osprey proposal is not the first of its kind. VanEck had already filed for a spot BNB staking ETF in May. However, the REX-Osprey partnership is instead pursuing the faster alternative, hoping to bring its fund to market ahead of competitors.

Competition in the Crypto ETF Race

The BNB filing comes at a time of intense activity in the crypto ETF space. Asset managers such as VanEck, Grayscale, Franklin Templeton, and Bitwise are racing to launch funds tied to other cryptocurrencies. This includes XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot.

The shift follows a regulatory reset under the Trump administration, where expectations for quicker and friendlier approvals are running high. Analysts suggest that, if cleared, the BNB staking ETF could launch by November 9. This would make it one of the earliest non-Bitcoin, non-Ethereum products available to U.S. investors.

The post REX and Osprey File for First U.S. Spot BNB Staking ETF appeared first on BitcoinLinux.com.