VanEck has filed an application with U.S. regulators to launch a spot exchange-traded fund for Binance Coin (BNB), signaling a deepening interest in regulated altcoin investment products beyond Bitcoin and Ethereum.
The proposed fund, which would trade on Nasdaq under the ticker VBNB, seeks to provide retail and institutional investors with direct price exposure to the BNB token through traditional brokerage accounts.
This move comes as other altcoin-based ETFs are gaining significant traction in the U.S. market. Spot Solana ETFs have accumulated over $843.81 million in net assets since their launch, with $57.99 million in inflows recorded recently. Bitwise’s BSOL product alone saw $39.5 million in inflows, marking one of its strongest days since debut.
Similarly, XRP spot ETFs have attracted $628.82 million in total assets, including $164.04 million in recent flows. Products managed by Grayscale and Franklin Templeton each recorded over $60 million in inflows.
In contrast to the rising interest in altcoin funds, Bitcoin ETFs experienced net outflows of $151.1 million on Monday. Ethereum ETFs, while positive, recorded more modest inflows of $96.6 million, falling short of XRP’s momentum.
The market also saw the recent debut of a spot Dogecoin ETF from Grayscale, ticker GDOG, which registered $1.41 million in traded volume on its first day, despite zero net flows. Analysts project daily volumes could eventually reach $11 million for the product.
🚀 VanEck presents application for BNB ETF before the SEC
The VBNB ETF will seek to offer exposure to the price of BNB on Nasdaq.
It will not include staking income initially, but it could be allowed in the future.
In a context of growing interest in altcoin ETFs, BNB…— Diario฿itcoin (@DiarioBitcoin) June 18, 2024
VanEck’s application, submitted via an amended S-1 form, outlines a strategy to hold physical BNB rather than employing derivatives or futures contracts. This approach mirrors that of other successful spot Bitcoin and Ethereum ETFs the firm has launched in both U.S. and European markets.
While the ETF aims to track BNB’s performance, it will not initially offer staking rewards. VanEck noted that this feature could be incorporated later through a third-party provider, provided investors receive prior notification.
The trust would not be regulated under the Investment Company Act of 1940 or by the Commodity Futures Trading Commission (CFTC). This regulatory status means the product carries higher investment risks, potentially including total loss of capital.
The fund’s valuation methodology will rely on the MarketVector BNB Index, which offers a transparent and standardized reference for BNB’s daily price. VanEck is recognized as a pioneer in developing regulated investment vehicles for digital assets.