VanEck has applied to create a spot ETF on BNB, which is the first attempt to create an exchange fund based on this token. The wave of applications for altcoin ETFs is increasing, causing optimism in the crypto industry.
At the moment, it is difficult to assess how likely it is that the U.S. Securities and Exchange Commission (SEC) will approve this application. At a recent conference, Changpeng “CZ” Zhao expressed the opinion that this market cycle is currently focused on Bitcoin ETFs, but altcoin proposals will gain more weight.
The first BNB-based ETF
Compared to the long struggle for a Bitcoin ETF, the gates are now open. Two weeks ago, there were over 70 active applications for altcoin ETFs, and the market is largely confident that several of them will receive approval. VanEck laid the groundwork for an ETF on BNB a little over a month ago by registering the relevant statutory trust in Delaware. This is standard practice for new crypto ETFs; VanEck did the same in March for its attempt to create an ETF for AVAX.
At the moment, it is difficult to assess the likelihood of approval, but BNB is one of the largest crypto assets. This may give it an advantage.
The fact that Binance is even considering creating an ETF in the U.S. indicates how far BNB has come recently. In 2023, American exchanges began reviewing the listing of BNB due to legal issues with Binance.
However, major exchanges like Kraken are beginning to list it again. BNB has some momentum; its price has already risen today a few hours before this announcement.
ETF analyst Eric Balchunas noted that CZ and Jan van Eck recently attended Token2049, though they did not speak on the same panel. While CZ is known for negotiating at industry conferences, there is no evidence that he and van Eck met directly. However, Balchunas said that some of CZ's comments might reflect his attitude towards the ETF on BNB:
"This cycle has so far been about ETFs. And it’s mostly about Bitcoin. Ether hasn’t had that success, but Bitcoin’s success will eventually spill over to others. It takes time, however. I think we are still at the beginning," quoted Balchunas from CZ's speeches at conferences.
At the moment, it is difficult to make further assumptions about the ETF on BNB. There is a huge wave of applications for altcoin ETFs, but the SEC may not make decisions on many of them until October. The Commission's attitude towards these other products may give some insight into BNB's chances, but its turn has not yet come.#USStablecoinBill #Write2Earn #BinanceSquare #MarketPullback #Binance $BNB