VanEck Files S-1 Form To SEC For Approval Launch the First-Ever BNB ETF in U.S Market
- VanEck submits S-1 form for BNB ETF to SEC for approval.
- BNB ETF aims to provide regulated and passive investment products.
- SEC approval could pave the way to staking and increased BNB demand.
VanEck has submitted an S-1 registration form to the U.S Securities and Exchange Commission (SEC) to launch a Binance Coin exchange-traded fund (BNB ETF). The submission marks a major step in VanEcks efforts to introduce a new crypto-based investment fund. If approved, the BNB ETF will be the first U.S -based fund tied to the Binance Coin.
ETF Structure
This ETF will track the price of BNB, the native token of the Binance which offers investors regulated exposure to the digital asset. This ETF operates as a passive investment vehicle unlike other BNB-related products. This allows investors to access BNB token without the need for cryptocurrency exchanges or digital wallets.
VanEcks BNB ETF application comes after it launched Bitcoin and Ethereum ETFs in 2023, which strengthens the firms position in the digital asset market. VanEck BNB ETF will directly hold the Binance coin tokens to reduce operational costs. This approach ensures low-cost and efficient operations for the fund compared to other complex financial products.
BNB ETF Staking
The proposed ETF will trade under a specific ticker symbol on the national securities exchange. VanEck intends to calculate the daily ETF price based on an index from Marketvector Indexes GmbH. The index will calculate the price of the ETF based on the top five BNB trading platforms to ensure an accurate price for the fund.
If the SEC approves the ETF, VanEck intends to enable the fund to stake BNB tokens to generate additional yield. However, BNB staking would require additional regulatory clearance. The ETFs investment approach does not include forks, airdrops or claim associated virtual currency rights.
ETF Race Gains Momentum Amid Regulatory Support
A third-party custodian will supervise the secure storage of the funds assets via cold and hot storage methods. Although the custodians insurance policies protect the assets from theft or fraud, it does not cover the losses from depreciation of BNB market value. This ensures that the funds security complies with the outlined industry standards.
VanEcks application comes amid a shift regulatory policies for for cryptocurrency investment products in the U.S. Since it approved the launch Bitcoin and Ethereum ETFs in 2024, the SEC has received several applications for altcoin ETFs on Solana, Avalanche and BNB. This demonstrates the increased institutional interest in altcoins investment products and their inclusion in mainstream finance markets.
Read more: https://www.tronweekly.com/vaneck-us-bnb-etf-could-impact-binance-coin/
Text source: TronWeekly
