REX-Osprey has filed with the SEC for a BNB + Staking ETF that would track the performance of Binance Coin, including staking rewards.
The fund plans to invest at least 80% of its net assets directly in BNB or through a Cayman Islands subsidiary, while allocating 20% to other ETFs that provide exposure to BNB.
Recent Price Surge and Network Growth Support ETF Timing
The filing comes as BNB reached new all-time highs above $882 in August, driven by record network activity of 16.8 million weekly active users on BNB Chain.
Source: CoinGeckoThe token has emerged as the fourth-largest digital asset with a market capitalization exceeding $119 billion, supported by growing institutional adoption and corporate treasury strategies.
Recent SEC guidance on liquid staking provided regulatory clarity that could accelerate approval of staking-based ETF products.
The regulator stated that liquid staking arrangements and receipt tokens, such as stETH, do not constitute securities transactions, thereby removing legal uncertainty that had previously hindered institutional participation.
The BNB ETF proposal follows REX-Osprey’s successful launch of Solana staking products and coincides with broader institutional adoption of Binance Coin.
Multiple companies, including Windtree Therapeutics and Nano Labs, have announced BNB treasury strategies, while B Strategy launched a $1 billion BNB-focused investment vehicle backed by YZi Labs.
Staking Mechanism Offers Yield Generation Despite Regulatory Complexity
The ETF’s staking component involves locking BNB tokens in BNB Chain’s delegated proof-of-stake validation process to earn transaction fees and network rewards.
The fund aims to stake all its holdings while maintaining sufficient liquidity, with staked tokens subject to approximately a seven-day unbonding period.
REX-Osprey will delegate BNB holdings to validators through crypto custodian Anchorage Digital Bank, passing all staking rewards, minus fees, directly to investors.
The structure includes liquid staking tokens that provide tradeable representations of staked BNB, enabling yield generation without complete illiquidity.
However, staking presents multiple risk factors, including slashing penalties for validator misbehavior that could result in significant principal losses.
The concentration of BNB Chain validation among Binance-related entities creates governance risks, while technology vulnerabilities could compromise staked assets.
The fund must also find its way around the 15% illiquid asset limits imposed by SEC regulations, which may potentially constrain staking levels during certain market conditions.
Despite these complexities, institutional demand for yield-generating crypto products has grown as traditional fixed-income returns remain compressed.
Staking rewards offer regular income streams that align with institutional investment mandates, which require cash flow generation beyond price appreciation.
Corporate Treasury Adoption Drives Institutional BNB Demand
Institutional interest in BNB has accelerated through corporate treasury adoption strategies pioneered by holders of Bitcoin and Ethereum.
BNC Network Company recently purchased 200,000 BNB, worth approximately $160 million, becoming the largest corporate holder of Binance Coin outside of exchange operations.
Similarly, Windtree Therapeutics signed a $60 million securities purchase agreement with options for an additional $140 million to implement BNB-focused treasury strategies.
If completed, the biotechnology firm would become the first Nasdaq-listed company with direct BNB holdings, potentially inspiring similar corporate adoption.
Nano Labs acquired 74,315 BNB for $50 million in July while outlining plans to accumulate up to $1 billion worth of tokens.
The Hong Kong-listed firm aims to target 5-10% of BNB’s circulating supply, which could potentially create significant supply constraints if successful.
Most recently, B Strategy has launched a $1 billion BNB treasury vehicle that aims to become the “Berkshire Hathaway of the BNB ecosystem” through a listing on U.S. public markets.
The initiative combines Asia-Pacific liquidity networks with American regulatory frameworks, backed by family offices connected to Binance founder Changpeng Zhao.
The corporate adoption wave occurs alongside Binance’s expansion into Islamic finance through Sharia Earn, a compliant staking platform serving 31 countries.
The $4 trillion Islamic finance market was seen as a massively untapped demand for halal crypto products that avoid interest-based returns.
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