If the product receives approval, US investors can gain regulated exposure to BNB without requiring them to hold the token themselves.
Grayscale has asked the US Securities and Exchange Commission for permission to start a spot exchange-traded fund that tracks BNB. This is one of the asset manager’s most ambitious efforts outside Bitcoin and Ether.
The planned Grayscale BNB ETF would hold BNB worth $895.02 directly and issue shares that match the token’s market value, minus fees and expenditures, according to a registration statement submitted on Friday. The application says that the fund plans to list on Nasdaq under the ticker symbol GBNB, but this is only if the regulators give their clearance.
If approved, the product would let US investors participate in BNB in a regulated way without having to own the token themselves or keep it on crypto exchanges.
Significance of a BNB-Linked Filing
A filing related to BNB is important since the token is the fourth-largest cryptocurrency by market capitalization, worth $120.5 billion at the time of the filing.
The Binance ecosystem’s native token is BNB, and it is crucial to all of its products. You can use the token to pay transaction costs on the BNB Smart Chain, take part in on-chain governance, and get discounts on trading fees on Binance’s platform, among other things.
Going Beyond Bitcoin and Ether
VanEck, an investment manager, filed a registration statement for its own proposed BNB ETF. This included an updated Form S-1 asking for a Nasdaq listing under the symbol VBNB. This puts it further along in the regulatory review process than Grayscale’s plan.
The filing does, however, highlight Grayscale’s bigger plan to introduce more crypto investment products to its lineup after the US approved and successfully launched spot Bitcoin BTC$90,026 and Ether ETH$2,961 ETFs.
Spot Bitcoin and Ether ETFs together manage more than $100 billion in assets, which shows that investors demand regulated access to cryptocurrencies.