Wall Street’s pursuit of cryptocurrency exchange-traded funds (ETFs) is escalating beyond Bitcoin and Ethereum. The battle for “altcoin spot ETFs” is intensifying, with recent filings signaling a potential breakthrough for BNB. Last Friday, the U.S. Securities and Exchange Commission (SEC) received two crucial prospectus amendments, indicating that the race between VanEck and Grayscale for the nation’s first BNB spot ETF might be entering its final, decisive phase.
VanEck and Grayscale’s Synchronized Moves Signal Imminent BNB ETF Approval
In a significant development, VanEck submitted its fifth amendment to the S-1 registration statement for its proposed BNB spot ETF, slated to trade on the Nasdaq exchange under the ticker “VBNB.” This consistent engagement with the SEC since its initial application in May last year underscores VanEck’s methodical approach to navigating regulatory hurdles.
Mirroring this progress, Grayscale also filed its second amended S-1 on the same day for its own BNB spot ETF, which, if approved, would also list on Nasdaq with the ticker “GBNB.”
The synchronized actions of these two major issuers have not gone unnoticed. Bloomberg ETF analyst James Seyffart highlighted on X (formerly Twitter) that such coordinated filings strongly suggest intensive dialogue with the SEC and a potential target for near-term listings. Seyffart speculates that BNB is highly likely to be the next cryptocurrency asset to secure a spot ETF approval in the U.S. market.
A key strategic decision by both issuers to facilitate regulatory approval is the initial exclusion of staking functionality from their ETF structures. Recognizing the U.S. regulatory uncertainty surrounding whether staking yields constitute securities, VanEck proactively removed this feature in November last year. However, both proposals prudently include provisions for potentially activating staking in the future, should the regulatory landscape evolve favorably.
These trusts are designed to directly hold BNB, and their shares will be listed on Nasdaq under Rule 5711(d), which pertains to “Commodity-Based Trust Shares.” VanEck’s product specifically intends to use the MarketVector BNB Index as its pricing benchmark.
At the time of writing, BNB trades around USD 642.90, experiencing a 1.9% dip in the last 24 hours, yet maintaining its position as the world’s fourth-largest cryptocurrency by market capitalization.
Canary Capital Pushes Forward with Staked Tron (TRX) ETF
As the BNB spot ETF race intensifies, asset management firm Canary Capital is making its own significant strides in the altcoin ETF space. Last Friday, Canary submitted the first amendment to its S-1 filing for the “Canary Staked TRX ETF,” boldly incorporating staking as a “secondary investment objective” for the fund.
This explicit inclusion means the ETF aims to generate additional TRX rewards by participating in Tron’s Proof-of-Stake (PoS) validation mechanism, with these rewards intended to be distributed back to investors. This marks a distinct approach compared to the initial non-staking strategies of the BNB ETF applicants.
The amended filing also clarified the previously undisclosed list of service providers. U.S. Bancorp Fund Services will serve as the transfer agent and administrator, while U.S. Bank will handle cash custody. Crucially, crypto custody giant BitGo has been appointed to safeguard the TRX digital assets. CSC Delaware Trust Company will remain the trust’s trustee, and Canary Capital Group will continue as the sponsor. However, details regarding the anticipated listing exchange, ticker symbol, and management fees for this fund are yet to be disclosed.
The Dawn of Diverse Altcoin ETFs
Beyond BNB and TRX, the pipeline for cryptocurrency ETFs on Wall Street continues to expand. Just last week, 21Shares’ Hyperliquid (HYPE) ETF made its debut, with Bitwise’s BHYP following closely, commencing trading last Friday. These recent listings, alongside the advancements for BNB and TRX, underscore the unfolding era of diverse altcoin ETFs, marking a significant evolution in the institutional adoption of digital assets.
Disclaimer: This article is for informational purposes only. All content and opinions are for reference only and do not constitute investment advice. They do not represent the views and positions of BlockBeats. Investors should make their own decisions and trades. The author and BlockBeats will not bear any responsibility for direct or indirect losses incurred by investors’ transactions.
