REX Shares and Osprey Funds have jointly filed with the U.S. Securities and Exchange Commission (SEC) for a BNB exchange-traded fund (ETF) featuring staking yield, marking a significant step in bridging decentralized finance (DeFi) and traditional finance. The filing comes as asset managers increase their push into crypto ETFs and yield-generating strategies. This move follows REX-Osprey's successful launch of a Solana (SOL) staking ETF.
The proposed REX-Osprey BNB + Staking ETF aims to allocate at least 80% of its capital to Binance Coin (BNB), the native token of the Binance ecosystem, or gain exposure through a Cayman Islands subsidiary. The remaining assets could be invested in other ETFs or exchange-traded products offering additional BNB exposure. The fund intends to stake all of its BNB, but only if its advisor can keep illiquid assets under 15% of the portfolio, a regulatory threshold designed to ensure investors can still redeem their shares for cash. Anchorage Digital Bank has been appointed custodian for the fund's BNB, related holdings, and liquid staking tokens.
The ETF is structured under the Investment Company Act of 1940, similar to the route taken for recently filed Solana products. This framework allows the ETF to offer exposure to BNB through both direct holdings and staking. By staking the majority of its BNB holdings on the BNB Chain, a delegated proof-of-stake (DPoS) network, the fund can capture staking rewards, estimated at 3–5% annually. This structure allows the fund to capture staking rewards while maintaining liquidity through liquid staking protocols. Unlike conventional spot ETFs, which merely track price movements, this product integrates yield generation into its core design.
The REX-Osprey BNB + Staking ETF differs from Osprey Funds' existing BNB Chain Trust, launched in 2024, which is geared toward accredited investors and has a minimum buy-in of $10,000. The new ETF aims to provide a more accessible investment vehicle for a broader range of investors.
The filing of the REX-Osprey BNB staking ETF coincides with increasing demand for BNB from institutional investors. Several corporations have begun adopting BNB as a tool for treasury management, similar to Bitcoin and Ethereum. For example, BNB Network Company (tBNC) raised $500 million via a PIPE offering to fund its BNB treasury strategy. Additionally, institutional interest is growing, with the REX-Osprey Solana fund attracting over $150 million in assets under management.
The proposed ETF could begin trading as early as November 9–10, 2025, if the SEC grants clearance. Bloomberg analyst James Seyffart suggests the fund could launch as early as November 9. The fund will be listed on the Cboe BZX Exchange if approved.
The emergence of BNB staking ETFs represents a new era for institutional crypto exposure, offering regulated access to BNB staking rewards via a 1940 Act-compliant structure. The fund combines BNB staking on BNB Chain with liquid staking protocols, addressing liquidity concerns while aligning with the SEC's 15% illiquidity cap and dual-custody security standards. BNB's foundational role in DeFi infrastructure strengthens its strategic value as a governance/collateral asset amid rising stablecoin adoption. The SEC's staking token clarification and the ETF's focus create a tax-efficient pathway for institutions to access yield-driven blockchain assets without sacrificing regulatory oversight.
