VanEck Moves Forward with U.S. BNB ETF Filing
The investment company VanEck moves toward establishing a USA-based BNB cryptocurrency exchange-traded fund (ETF). On March 31, VanECK created a new Delaware company called VanEck BNB ETF, which suggests efforts toward building a spot BNB ETF.
The corporate trust company filing 10148820 reveals how BNB chain could enter the U.S. ETF market as a new entity. BNB Chain expands its operations into the financial products space by introducing traditional products at the earlier Binance Chain name.
VanEck Becomes First U.S. Firm to File BNB ETF
VanEck leads the way by proposing an American BNB stock fund, according to social media reports. Contrary to common belief, these types of investment instruments were introduced in Europe long before. 21Shares debuted their crypto asset BNB exchange-traded product in Switzerland through a launch in October 2019.
As the second oldest BNB ETP product in Switzerland, the 21Shares BNB ETP manages only $15 million or 0.3% of Switzerland”s entire crypto market worth $5.3 billion, according to CoinShares and TradingView statistics. The fund lost €537 million ($580 million) due to substantial investments leaving during recent times.
Binance introduced BNB as a trading benefit and fee discount tool on July 2017 through its ERC-20 token on Ethereum. During its transformation, BNB adopted its role as the official cryptocurrency for the BNB Chain, which now supports various Web3 applications across its decentralized network.
BNB ETF Awaits SEC Final Decision
As evidenced by CoinGecko, BNB stands as the fifth-ranked cryptocurrency by market value, which today amounts to $88 billion. The VanEck company applied to sell BNB ETF products during this new phase of altcoin ETF applications, which started under President Donald Trump”s government.
In early March, VanEck registered a Delaware trust for an ETF that tracks Avalanche (AVAX) to enlarge its cryptocurrency product lineup. Nine finance companies submitted individual applications to the SEC for an XRP ETF during March 12.
The new application moves BNB towards U.S.-listed ETF status but the SEC needs to give its official approval before the product can be launched. The SEC always moves cautiously when evaluating crypto-related ETF proposals, especially for alternative cryptocurrency tokens.
VanEck shows that digital assets enter financial markets more formally through its actions. With SEC approval, the VanEck BNB ETF provides a safer path to invest in the popular Binance coin.
