VanEck dropped staking plans for its proposed spot BNB ETF. This decision aims to boost regulatory approval chances, despite prior staking in a Solana product.
Asset manager VanEck has backed away from earlier plans. It will not risk assets in its proposed spot BNB exchange-traded fund. This decision is at odds with its newly launched Solana product, which has staking. This move is part of a strategic shift for the firm.
BNB ETF Filing Excludes Staking for Regulatory Approval
In an amended S-1 filing on November 21 with the US Securities and Exchange Commission (SEC), VanEck explained its position. The Trust will not use its BNB in Staking Activities. Accordingly, it will not receive any staking rewards or income. This is true from staking activities time of listing. The filing goes on to warn that there is no assurance. The Trust will undertake any Staking Activities in the future.
The filing explicitly states that the trust’s BNB will not be staked. This is for the foreseeable future. However, it leaves the door open for possible staking activities. This would only be made to happen if regulators permit it. This is a warning sign of a cautious approach to regulatory compliance.
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The decision to abandon the staking feature was probably strategic. It is in the hope of increasing the chances of regulatory approval. This is from the United States Securities and Exchange Commission (SEC). Other issuers of spot crypto ETFs have dropped the staking features as well. This secures the approval of the commission.
The filing leaves open the possibility of adding staking in the future. This would occur by means of a prospectus supplement. It is still dependent on regulatory approval. This has the advantage of giving the Trust flexibility.
Potential Milestone for BNB Chain Ecosystem
If approved, this ETF (ticker: VBNB) would be the first spot BNB ETF in the US. It would be listed on Nasdaq. It would give access to the BNB token to institutional investors. This access would be without holding the asset.
The filing comes with a more favorable regulatory landscape for crypto ETFs. Recent approvals of other altcoin ETFs, such as DOGE and XRP, highlight this trend. This shows a wider acceptance of crypto investment products.
A U.S.-listed BNB ETF would be a milestone not only for the BNB Chain ecosystem. It would provide traditional brokerage and retirement accounts with direct access to BNB. This would be for the first time. This is huge validation in terms of institutional support for the Binance-affiliated network. This is especially true following years of regulatory pressure around the exchange.
This filing comes just as NYSE Arca approved DOGE and XRP spot ETFs. Both began trading on Monday. Chainlink is also up for similar approval. Altcoin ETFs are obviously on the mainstream path, expanding the range of investments.