The Lowdown: VanEck's BNB ETF proposal sets a new milestone
VanEck seeks US Securities and Exchange Commission (SEC) authorization to introduce the first exchange-traded fund (ETF) based on Binance Coin (BNB) in the American market.
VanEck takes a leap with BNB ETFOnly a couple of days ago, investment juggernaut VanEck, which manages an impressive $110 billion in assets, pitched an idea bound to shake up the cryptocurrency world - a Binance Coin (BNB) ETF[1][2][5]. This is history in the making, as VanEck marks the first company to ever file for a spot BNB ETF in the U.S[1][2][5].
Does this mean BNB is moving mainstream?For the unacquainted, BNB is the native token of Binance, the globe's largest centralized cryptocurrency exchange by daily trading volumes, as per CoinGecko data[1]. BNB can be used across the Binance ecosystem for discounts on transaction fees, interfacing with decentralized applications, and purchasing goods and services[1].
BNB on the riseCurrently, BNB is trading around the $599 mark, exhibiting a nearly 2% growth in the past 24 hours[1]. Asset managers have been hunting for regulatory green lights for digital asset funds in the U.S, thanks to the country's relaxed crypto industry regulations and growing investor appetite for crypto-oriented products[1].
More crypto products on the horizon?In fact, the U.S. Presidential election last year welcomed a flood of ETF filings, proposing various cryptocurrencies, including Solana, meme coins such as Dogecoin, BONK, and even Official Trump-branded ETFs, and even NFTs[1]. Moreover, there's a surge in interest in spot Bitcoin ETFs, witnessing a massive $1.8 billion influx last week alone[1]. Since their approval, spot Bitcoin ETFs have grown to a combined market capitalization of $112 billion, while spot Ethereum ETFs have seen substantial, yet moderate inflows[1].
VanEck isn't alone in the raceAlthough VanEck is the only U.S. firm officially presenting a spot BNB ETF proposal, Switzerland-based 21Shares has been offering a BNB-based investment vehicle in Europe since 2019, with its 21Shares Binance BNB ETP listed across various European exchanges[1].
Article revised by James Rubin
[1] Enrichment data: VanEck has filed to launch an exchange-traded fund (ETF) that tracks the spot price of the Binance Coin (BNB) token, which would provide regulated exposure to BNB through traditional investment vehicles for U.S investors. This marks the first attempt by a company to bring a spot BNB ETF to the U.S. market. BNB is the native token of Binance, the largest centralized cryptocurrency exchange by daily trading volumes. BNB is used across the Binance ecosystem for discounts on transaction fees, interfacing with decentralized applications, and purchasing goods and services. Asset managers are increasingly seeking regulatory approval for digital asset-based funds in the U.S. amidst relaxed crypto regulations and growing investor demand. This includes ETFs based on various cryptocurrencies such as Solana, Dogecoin, and even Trumps-branded ETFs, and NFTs. VanEck's BNB ETF proposal comes at a time when spot Bitcoin ETFs have seen strong inflows, amassing $1.8 billion just last week. Spot Bitcoin ETFs have reach a combined market capitalization of $112 billion, while spot Ethereum ETFs have brought in solid, albeit more modest inflows. Although VanEck is the only U.S. firm to have officially proposed a spot BNB ETF, Switzerland-based 21Shares has been offering a BNB-based investment vehicle in Europe since 2019.
- The proposed BNB ETF by VanEck, if approved, will offer regulated exposure to the Binance Coin token for U.S investors through traditional investment vehicles.
- This marks the first time a company is attempting to bring a spot BNB ETF to the U.S market.
- BNB is the native token of Binance, the largest centralized cryptocurrency exchange by daily trading volumes.
- BNB can be used across the Binance ecosystem for discounts on transaction fees, interfacing with decentralized applications, and purchasing goods and services.
- Asset managers in the U.S have been seeking regulatory approval for digital asset-based funds, spurred by relaxed crypto regulations and growing investor demand.
- This trend includes ETFs based on various cryptocurrencies such as Solana, Dogecoin, and even Trumps-branded ETFs, and NFTs.
- Spot Bitcoin ETFs have seen strong inflows recently, amassing $1.8 billion just last week.
- Spot Bitcoin ETFs now have a combined market capitalization of $112 billion, while spot Ethereum ETFs have brought in solid, albeit more modest inflows.
- Switzerland-based 21Shares has been offering a BNB-based investment vehicle in Europe since 2019.
- This development in the cryptocurrency world, spearheaded by VanEck's BNB ETF proposal, signals a potential move towards mainstream acceptance for BNB and other digital assets.
