One of the prominent and leading asset managers, VanEck, has filed an application with the U.S. Securities and Exchange Commission (SEC) for launching Binance Coin (BNB)‘s first-ever exchange-traded fund (ETF), marking a significant institutional cryptocurrency investment product growth.  The move comes after the company’s success in launching Bitcoin and Ethereum ETFs, meaning investors’ appetite for diversified exposure to digital assets is broadening.

A Landmark Move for Crypto ETFs

Under Delaware public records listed on the state’s official website, the firm, which has about $115 billion in global client assets, submitted the new product, VanEck BNB ETF, on March 31 under the filing number 10148820 as a corporate trust service company. Along with the file, BNB joins Bitcoin, Ether, Solana, and Avalanche as the fifth cryptocurrency to have a standalone ETF registration initiated by VanEck in Delaware. 

This is the first step in the process of launching an ETF, which typically comes before a formal application to the Securities and Exchange Commission. If approved, the fund would enable regular investors to obtain exposure to BNB without actually holding the asset, making it easier to access one of the major cryptocurrencies in terms of market value. VanEck’s filing is the first to try to bring a Binance Coin (BNB) ETF to the US market. Although BNB-related products such as the 21Shares Binance BNB ETP are available, they are not US-based ETFs. 

Following the successful registration of Bitcoin and Ethereum ETFs, the firm filed for a spot Solana ETF during the last year in mid-term. VanEck registered an Avalanche ETF in the state of Delaware last month. Though the file was submitted on March 31, news emerged today, and BNB’s price still hasn’t responded. The price of BNB fell by 0.31% in the last hour and 2.08% over the last 24 hours, and at the time of writing, it is at $603. 

Regulatory Challenges and Industry Outlook

While VanEck’s filing has created a lot of excitement, regulatory approval remains to be seen.  Due to concerns regarding investor protection and market manipulation, the U.S. Securities and Exchange Commission (SEC) has been reluctant to approve crypto ETFs except for Bitcoin and Ethereum.  The clearance process for the ETF could be affected by the increased regulatory scrutiny that Binance, the parent entity of BNB, has experienced in the United States and elsewhere.

But if authorized, the BNB ETF would pave the way for other crypto-based investment vehicles, further cementing the credibility of the industry.  

Authorization of other crypto ETFs would be an indicator that cryptocurrencies such as Ethereum, in addition to Bitcoin, are being accepted increasingly by regulators, according to professionals.

VanEck’s quest for a BNB ETF marks the shifting dynamics of cryptocurrency investment, as institutional appetite is pushing the frontiers of financial products. As much as regulatory barriers exist, the move is an indication of the increasing adoption of digital assets in mainstream finance