- REX-Osprey has filed with the SEC for the first-ever U.S. BNB staking ETF, with approval expected as soon as November.
- The fund blends BNB price exposure with staking rewards, giving institutions access to validator yield without managing wallets or unbonding risks.
- Structured under the 1940 Act, the ETF mirrors REX-Osprey’s Solana staking product, which proved the model could gain regulatory traction.
REX-Osprey is making waves with its latest filing: a BNB staking ETF designed to bring Binance’s native token into traditional finance in a way that also captures staking rewards. Filed with the SEC under the Investment Company Act of 1940, the proposed fund could go live as early as November if approved. Unlike spot ETFs that simply track price, this one bakes in staking yield, giving institutions a double benefit — exposure to BNB’s price action and access to validator rewards, all while maintaining liquidity buffers.
How the Fund Would Work
The ETF’s structure is a little different than typical crypto funds. It will hold tokenized BNB, with a portion staked directly or via liquid staking protocols, while keeping no more than 15% of assets locked to address the network’s seven-day unbonding period. The design also allows institutions to use tokenized BNB as collateral to borrow stablecoins, bridging DeFi strategies with regulated investment products. Creations and redemptions will settle in cash, making the ETF flexible for investors who want staking exposure without operational headaches.
Following Solana’s Playbook
This isn’t REX-Osprey’s first attempt at blending staking with ETFs. The firm recently launched a Solana staking ETF under the same 1940 Act framework, a product that drew in $161.7 million during its first two months. While it hasn’t reached the level of Bitcoin or Ethereum ETFs in popularity, it set an important precedent: the SEC seems more willing to approve staking-based ETFs when structured under the 1940 Act. Now, the same pathway could open the door for BNB, one of the world’s most actively used assets in DeFi.
Why It Matters for Institutions
A staking ETF could be BNB’s ticket into mainstream portfolios. Institutional players get regulated access to one of the largest altcoins, while also benefiting from the yield-generating mechanics of staking — without needing to manage wallets, validators, or unbonding risks. With DeFi staking yields becoming a competitive edge, analysts believe this ETF could help solidify BNB’s position in institutional strategies, even if retail hype lags behind bigger names like BTC or ETH.
