For a long time, cryptocurrency ETFs have been a dream for investors. Since 2013, the year the first application for a Bitcoin ETF was submitted, the cryptocurrency audience has been waiting for this step that will represent the market reaching the stage of institutional investment.

Indeed, since the launch of Bitcoin ETFs in 2024, a new phase has begun in the market.

In this article, we explain what digital ETFs are and why the launch of the BNB ETF is of particular importance.

What are cryptocurrency ETFs?

ETFs are investment tools traded on global exchanges like stocks, reflecting the price of a specific asset. Digital Spot ETFs represent a direct investment in a cryptocurrency without the need to purchase the currency yourself or hold it in an external wallet.

Simply put, you can invest in a cryptocurrency just as easily as you would invest in shares of Apple or Tesla, by purchasing a share in an ETF that covers that currency.

Why the interest in digital ETFs?

  1. Ease of access: You do not need to create an account on a cryptocurrency platform or deal with wallets. You simply buy shares of the fund in the U.S. stock market.

  2. Security: The fund's portfolio is managed by trusted companies, reducing the risk of hacking or losing private keys.

  3. Institutional capital flow: ETFs open the door for traditional funds and large financial institutions to enter the cryptocurrency market.

Why the interest in the BNB ETF?

  1. BNB's position in the market:
    – The fourth-largest cryptocurrency by market capitalization (excluding stablecoins).
    – Issued by Binance, the largest cryptocurrency exchange in the world.

  2. Reliability: Linking the ETF to BNB gives investors additional confidence in BNB as a long-term investment currency.

  3. Facilitating access to the U.S. market: Launching the BNB ETF on a U.S. exchange will make it easier for investors in the United States to invest in BNB without regulatory and technical complications.

When is the BNB ETF expected to launch?

VanEck is the company that submitted the BNB ETF fund application and is one of the first companies to launch a Bitcoin ETF, having extensive experience in this field.
VanEck submitted this application on March 31, 2024, to the U.S. Securities and Exchange Commission (SEC).
The next steps follow VanEck's fulfillment of regulatory requirements. Given VanEck's successful track record in obtaining approvals for Bitcoin funds, its approval for the BNB ETF seems likely in the coming months.