Key Takeaways
REX-Osprey has filed for a BNB staking ETF aiming to invest at least 80% of assets in BNB and related products.
The ETF will generate staking rewards and expose investors to both BNB price volatility and specific staking risks.
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ETF provider REX Financial and asset management firm Osprey Funds filed paperwork with the US SEC this week for a new exchange-traded fund, which would track the performance of BNB, formerly known as Binance Coin, and generate staking rewards.
The proposed fund, the REX-Osprey BNB + Staking ETF, would invest at least 80% of assets in BNB and BNB-related investments, including direct holdings of the crypto asset and shares of other ETFs providing BNB exposure, according to a recent SEC filing.
The ETF will invest at least 40% of its assets in other exchange-traded funds and products, including non-US ETPs that track BNB. Initial investments may include the 21Shares Binance BNB ETP listed in Switzerland and a planned REX-Osprey Binance BNB ETP.
The fund, which will be listed on the Cboe BZX Exchange if approved, aims to stake its BNB holdings to earn additional rewards, subject to a 7-day unbonding period for staked assets.
The application comes after REX Financial and Osprey Funds debuted their staked Solana ETF in June after resolving SEC comments.
Named the Rex-Osprey Solana + Staking ETF, the fund holds Solana through a Cayman Islands subsidiary and aims to stake at least 50% of its holdings. The launch marked the first staked crypto ETF in the US, structured not as a traditional spot ETF but under the Investment Company Act and taxed as a C-corporation.
Following the approval of spot Bitcoin and Ethereum ETFs in the US, asset managers are now moving to expand their range of crypto investment products.
In May, VanEck filed with the SEC to launch the first US-based spot BNB ETF, which would hold BNB as the underlying asset and potentially incorporate staking rewards.
BNB, the fifth-largest digital asset by market capitalization, recently hit a new all-time high of $899.
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