The race to expand crypto exposure in traditional finance has entered a new chapter, with asset-management heavyweight VanEck moving to list a spot exchange-traded fund backed by BNB on the Nasdaq.
Key Takeaways
VanEck is seeking SEC approval for the first spot BNB ETF on Nasdaq.
The fund will hold BNB directly but will not include staking rewards.
Regulatory uncertainty around BNB’s security status remains the main risk to approval.
If the product receives the green light from U.S. regulators, it would mark the first time American investors can gain direct BNB exposure through a conventional brokerage account rather than buying the token on a crypto exchange.
The proposed ETF, designed to follow the live price of BNB, would store the token itself rather than relying on futures contracts or synthetic derivatives. This approach mirrors the highly successful spot ETFs already launched for Bitcoin and Ethereum earlier this year and signals growing confidence from Wall Street that mainstream demand for digital-asset exposure is here to stay.
A Turning Point for the BNB Ecosystem
BNB, the native token powering the BNB Chain, has become one of crypto’s dominant assets, ranking fifth globally by market capitalization. VanEck’s decision to build an institutional-grade vehicle around it reflects not only investor appetite for layer-1 blockchain assets beyond Bitcoin and Ethereum, but also the rapid growth of decentralized finance activity on the BNB network.
Analysts believe that approval could transform BNB’s accessibility in the U.S. market. Until now, institutional money has had limited avenues to deploy into the BNB ecosystem without direct token purchases or exposure to products listed overseas. A Nasdaq-listed ETF would change that dramatically.
The Staking Controversy: A Feature Now Off the Table
Early drafts of VanEck’s filing hinted at one major innovation: a structure that could allow ETF holders to benefit from staking rewards generated by the underlying BNB. That possibility immediately captured market attention — a passive-income component inside a regulated ETF would be unprecedented in the U.S.
However, VanEck’s latest amendment removes staking from the plan entirely. The company now states that the ETF will not stake any portion of its BNB holdings at launch and may never introduce staking even if rules evolve. VanEck acknowledged that this creates a performance gap between holding BNB personally and holding it through the ETF, since staking rewards would be forfeited.
The reversal highlights an issue becoming increasingly sensitive in the United States: whether staking activity — and the tokens that rely on staking — could fall under securities law.
Regulatory Shadows Still Hover Over BNB
While the filing does not directly explain the decision to exclude staking, the updated language signals concern about BNB’s regulatory status. VanEck openly warns that the SEC could classify BNB as a security, and if that happens the trust may be forced to dissolve.
The uncertainty stems from the SEC’s ongoing battles with crypto companies over whether tokens sold on secondary markets should be treated as securities. BNB was named among dozens of assets the regulator claimed were securities in lawsuits during 2023. A federal court later ruled that secondary trading of BNB was not a securities transaction — but the broader question remains unresolved.
Even the SEC’s more recent guidance on staking has failed to provide market-wide clarity. Some officials argue that staking-as-a-service can be regulated without treating individual tokens as securities; others disagree. Until that debate settles, any ETF tied to a proof-of-stake ecosystem carries inherent legal risk.
A High-Stakes Decision for the SEC
VanEck’s BNB ETF filing has become more than a product proposal — it is a litmus test for how far the SEC is willing to extend regulated crypto exposure beyond Bitcoin and Ethereum. Analysts agree that approval would open the door for additional spot ETFs tied to major Web3 networks rather than store-of-value plays alone.
A denial, on the other hand, would signal that the SEC is still unwilling to expand the U.S. crypto ETF landscape to assets with unresolved securities-classification questions.
With no fixed deadline for the regulator’s decision, the crypto industry is now watching closely.
