Rex-Osprey Submits Filing to List BNB Staking ETF
News Summary
REX Shares and Osprey Funds have filed an N-1A form with the U.S. Securities and Exchange Commission (SEC) to list a BNB staking exchange-traded fund (ETF). The fund aims to stake most of its Reference Asset BNB holdings, seeking staking rewards either through direct staking or by investing in liquid staking protocols. The ETF is planned to be listed on the Cboe BZX Exchange, with Anchorage Digital Bank National Association acting as the custodian for digital assets and U.S. Bank for traditional holdings. This filing follows the precedent set by Rex-Osprey's Solana + Staking ETF, which launched in July, also filed under the Investment Company Act. This move mirrors a similar BNB ETF application from VanEck in May, highlighting continued institutional interest in offering yield-generating crypto products, despite the Solana + Staking ETF's early trading potentially undershooting expectations, though it now manages over $150 million in assets.
Background
The regulatory approval process for cryptocurrency Exchange Traded Funds (ETFs) in the United States has historically been challenging. Following President Donald J. Trump's re-election in November 2024, his administration's stance on the crypto sector is perceived as potentially more open, yet regulators, particularly the U.S. Securities and Exchange Commission (SEC), continue to balance innovation with investor protection. The current filing by Rex-Osprey for a BNB staking ETF follows their successful launch of the first U.S. Solana + Staking ETF in July. Unlike spot Bitcoin and Ethereum ETFs, these staking ETFs are filed under the Investment Company Act, which provides a different regulatory framework for fund structures and may offer a clearer approval pathway for the SEC. Furthermore, VanEck also submitted a BNB ETF application with a staking component in May, indicating that multiple institutions are actively exploring the possibility of launching such products in the U.S. As the crypto market matures, yield-generating investment products are attracting increased institutional interest.
In-Depth AI Insights
1. Why are issuers favoring the Investment Company Act route for staking ETFs, and what does this signify for the institutionalization of crypto products in the U.S.? - The Investment Company Act provides an established regulatory framework for traditional funds, which likely presents a lower risk path for the highly cautious SEC compared to forging entirely new regulatory avenues for spot crypto products, especially when the classification of all crypto assets remains ambiguous. - This approach offers stronger investor protection mechanisms and operational transparency, which helps mitigate SEC concerns and potentially expedites the approval process, even if it imposes more restrictions on the fund's structure and asset allocation. - Given the Trump administration's openness to crypto innovation while respecting existing regulatory systems, introducing crypto products through this