BNB, the native cryptocurrency of the Binance ecosystem, is set to become more accessible to US investors. VanEck, a global investment management firm, has filed a trust in Delaware to launch the first BNB exchange-traded fund (ETF) in the US.
This move marks the first attempt to launch a physically-backed BNB ETF in the US. It could open doors for both institutional and retail investors to gain exposure to cryptocurrencies through a regulated investment vehicle. The trust, filed on March 31 under the name “VanEck BNB ETF” with filing number 10148820, tracks the price of BNB.
BNB is the fifth-largest cryptocurrency by market capitalization, with a value of $87.1 billion. Despite its prominence, BNB and the broader crypto market have faced challenges lately.
Crypto Market Challenges and Opportunities
BNB’s value has dropped 2.2% in the last month, reaching $598. However, the filing of this trust is expected to boost interest in the cryptocurrency. The investor community remains optimistic about BNB’s prospects despite market volatility. Expectations are high, with one analyst on X commenting, “Send BNB to the moon now.”
VanEck has shown interest in attracting investors by filing a trust for an Avalanche (AVAX)-focused ETF weeks earlier. This consistency suggests that an S-1 registration statement with the US Securities and Exchange Commission (SEC) could follow soon, a necessary step to advance the BNB ETF.
Rise of Crypto ETFs
Interest in crypto ETFs has increased recently, coinciding with a pro-crypto administration in the US. A survey revealed that 71% of ETF investors plan to increase their crypto allocations in the next year. This enthusiasm is especially notable in Asia and the US, where demand exceeds 75%, while interest in Europe is notable but lower.
This growing investor interest in crypto funds indicates a significant shift in how cryptocurrencies are being perceived and used by fund managers. VanEck’s bet on a BNB ETF represents not only an advancement in financial product offerings but also an evolution in market acceptance.
Investors should be aware that investing in cryptocurrencies is high-risk and may not be suitable for everyone. It’s essential to research, consult an expert, and verify applicable legislation before investing. You could lose your entire capital.