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Crypto News Flash
SEC Approval Sought by VanEck for Launching First BNB Exchange-Traded Fund (ETF) in the US
VanEck, a major investment firm with over $110 billion in assets under management, has applied for approval to launch a BNB ETF in the United States, according to an S-1 registration statement filed with the SEC.
This proposed fund aims to provide investors with an easy way to access Binance Coin (BNB) without the need to directly hold the asset.
With this move, VanEck is the first firm to indicate plans to introduce a BNB ETF in the U.S., marking a breakthrough in the crypto space.
BNB: A Multi-purpose Token
BNB is the native token of Binance, the largest centralized cryptocurrency exchange globally in terms of daily trading volumes, according to CoinGecko data. Holders of BNB can benefit from reduced transaction fees, interact with decentralized applications, purchase goods and services, and enjoy a range of other utilities within the Binance ecosystem.
As of this writing, BNB is trading at roughly $599, with a 2% increase in the past 24 hours, as per CoinGecko.
America's Crypto Boom
VanEck's BNB ETF proposal is part of a broader trend in the U.S. as asset managers are racing to secure approval for digital asset-focused funds amid increased investor demand and regulatory easing[1][3][5].
The surge in interest can be attributed, in part, to the election of U.S. President Donald Trump, who has strong ties to the digital assets industry. Several investment firms have filed for an assortment of ETFs based on different cryptocurrencies, from Solana to various meme coins like Dogecoin, BONK, and even Official Trump-themed ETFs[4].
Furthermore, spot Bitcoin ETFs in the U.S. have recently experienced significant inflows, collecting around $1.8 billion merely last week. Since their approval, these ETFs have amassed a combined market capitalization of $112 billion, while spot Ethereum ETFs have attracted more modest, though still substantial, inflows[1].
European Presence
While VanEck is the first U.S. firm to propose a spot BNB ETF, at least one investment company is already managing a BNB-based investment vehicle in Europe. The Switzerland-based 21Shares has been offering its 21Shares Binance BNB ETP since 2019, listed on several European exchanges.
Editor's Note by James Rubin
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- The investment firm VanEck, aiming to provide easier access to Binance Coin (BNB), has filed for approval to launch a BNB ETF on Ethereum, which would be the first in the U.S.
- Asset managers in the U.S. are racing to secure approval for digital asset-focused funds, such as those based on Solana, Dogecoin, BONK, and even Official Trump-themed ETFs, due to increased investor demand and regulatory easing.
- VanEck's BNB ETF proposal is part of a broader trend in the crypto space, including significant inflows into spot Bitcoin ETFs, collecting around $1.8 billion last week, and spot Ethereum ETFs, which have also attracted substantial inflows.
- Binance Coin (BNB) is the native token of Binance, the largest centralized cryptocurrency exchange globally, used for reduced transaction fees, interacting with decentralized applications, purchasing goods and services, and various utilities within the Binance ecosystem.
- European investment companies are also participating in the crypto boom, with the Switzerland-based 21Shares offering its 21Shares Binance BNB ETP since 2019, listed on several European exchanges.
- Cryptocurrencies like BNB, Bitcoin (BTC), and Ethereum (ETH) are considered digital assets and have been attracting substantial interest in areas like DeFi, altcoins, and NFTs.
- Investing in cryptocurrencies and digital assets offers potential high returns but also comes with a high degree of risk, as suggested by the recent volatility seen in various cryptocurrency markets. It's essential to conduct thorough research before investing.
