VanEck Files for Spot BNB ETF with SEC, Plans Nasdaq Listing

In Brief

• VanEck files for BNB ETF to track Binance Coin’s price movements.
• ETF will be listed on Nasdaq under ticker VBNB if approved.
• Higher investment risks noted, with potential for total loss.

VanEck Digital Assets has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot-based ETF focused on Binance Coin (BNB). The VanEck BNB ETF aims to hold BNB tokens and track their price movements directly. Pending SEC approval, the ETF will be listed on Nasdaq under the ticker VBNB.

The ETF will calculate its asset value daily using the MarketVector BNB Index, reflecting the price performance of BNB after deducting trust operating expenses. VanEck has clarified that no staking activities have been conducted for this fund so far. 

However, the company has stated that if staking is implemented in the future, it will be done via a third-party service provider, and investors will be notified in advance.

Risk Factors and Regulatory Considerations

The VanEck BNB ETF will not be regulated under the Investment Company Act of 1940 or by the Commodity Futures Trading Commission (CFTC). 

As a result, the ETF carries higher investment risks, including the potential for total loss. Investors should be aware of the risks involved before investing in the fund.

VanEck has already secured seed investments in the ETF, with Van Eck Associates Corporation purchasing shares totaling $100,000. To move forward with the ETF, VanEck filed an S-1 amendment, responding to the SEC’s comments, which signals progress towards approval. 

Once approved, the ETF is expected to offer a new way for investors to gain exposure to BNB’s price movements.

BNB has recently reached a key support zone, indicating potential growth. Analysts suggest that if the price holds at this level, a rebound to the $950-$1,050 range could be possible.