VanEck Wants BNB ETF—Big Win for Binance?
VanEck has filed its sixth cryptocurrency ETF in Delaware, a Binance Coin (BNB) ETF. Despite market instability, large financial institutions are betting on digital assets.
VanEck registered the new product on Monday under registration number 10148820, according to Delaware's state website. The “VanEck BNB ETF” was registered as a trust corporate service firm after Bitcoin, Ethereum, Solana, and Avalanche ETFs.
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.
On March 28, the NASDAQ exchange applied to the SEC to list Grayscale's Avalanche ETF. Grayscale's AVAX fund would employ Coinbase Custody, per filings.
VanEck's partnership with BNB implies large financial institutions anticipate investor demand for regulated cryptocurrency investment vehicles beyond Bitcoin. In June 2024, the business applied for a Solana ETF, the first US SOL ETF.
