VanEck Moves Toward First U.S. BNB ETF Amid Growing Altcoin Filings
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VanEck, a fund manager, has taken a bold step toward launching a U.S.-based exchange-traded fund (ETF) for BNB, the native cryptocurrency of the BNB Chain. The investment firm registered “VanEck BNB ETF” in Delaware on March 31, signaling a potential application to the U.S. Securities and Exchange Commission (SEC).
To this end, if approved, it would be the first U.S. ETF tracking BNB, reflecting growing institutional interest in altcoin ETFs under the Trump administration.
VanEck’s BNB ETF and Expanding Altcoin Offerings
VanEck’s move follows its recent registration of an Avalanche ETF trust and ongoing efforts by multiple firms to launch an XRP ETF.
Before now, the firm had attempted a crypto-focused public listing back in 2021 via a special-purpose acquisition company (SPAC) but was blocked by the United States SEC. However, after pausing IPO plans because of the FTX crash back in 2022, VanEck has now confidentially filed for an IPO in the early part of 2024, signaling a renewed interest in crypto integration with traditional finance.
BNB’s Market Role and European ETF Landscape
Before now, the coin was launched as an Ethereum-based ERC-20 token in 2017. BNB now operates on the BNB Chain, powering a broader Web3 ecosystem. However, with a market capitalization of around $88 billion, the coin ranks as the fifth-largest cryptocurrency.
While the U.S. lacks a BNB ETF, Europe has hosted a similar product since 2019. 21Shares’ BNB exchange-traded product (ETP) in Switzerland has seen significant outflows, dropping $580 million in assets over the past year. Currently, it holds about $15 million, just 0.3% of Switzerland’s total crypto AUM.
BNB at the moment trades approximately at $599.78, but with the proposed U.S. BNB ETF, institutional interest could be boosted. However, past filings, such as the fake iShares XRP Trust in 2023, suggest why strong regulatory oversight and measures are needed.
As it stands, the firm, VanEck, is yet to confirm its filing. However, if it becomes successful, it would mark a great milestone in mainstream cryptocurrency adoption.
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