The BNB ETF will follow Binance Coin, the fifth-largest cryptocurrency with a market value of $599, according to the New York-based startup. BNB's on-chain trade volume increased 40% to nearly $2 billion following the announcement.

First BNB ETF Try In US Markets

VanEck's petition is the first to launch a Binance Coin ETF for US investors. BNB-related products like the 21Shares Binance ETP are available worldwide, but none are in the US. Only the 21Shares exchange-traded note tracks the Binance Coin index.

“VanEck seems to be taking a ‘throw everything at the wall and see what sticks’ approach, which makes sense,” said etf.com senior ETF analyst Sumit Roy. “Avalanche isn't the most traded cryptocurrency, but being first to market with a new ETF has potential upside and little downside.”

VanEck isn't alone in seeking alternative cryptocurrency ETFs. Grayscale has filed to offer XRP, Solana, and Dogecoin funds. The firm's Bitcoin fund manages over $17 billion, ranking third after BlackRock and Fidelity.

Gaining Crypto ETF Momentum

ETF applications increased as spot Bitcoin and Ethereum funds performed well in 2023. Cryptocurrency exchange-traded vehicles raised $44 billion in 2024.