Grayscale and Vaneck Both Update Spot BNB ETF Filings as US SEC Review Heats Up

3 weeks ago

Grayscale has submitted a 2nd amended S-1 for its projected spot BNB exchange-traded fund, a improvement Bloomberg ETF expert James Seyffart says indicates progressive SEC engagement. Vaneck filed its ain competing update connected the aforesaid day.

Key Takeaways

Grayscale filed a 2nd amended S-1 for its BNB ETF connected May 16 with the SEC.
Vaneck updated its ain competing BNB ETF exertion the aforesaid day, the archetypal simultaneous dual amendment of this nature.
Bloomberg’s James Seyffart said Grayscale’s amendment suggests the SEC is reviewing and engaging actively with some players.

The Race for a Spot BNB ETF

Grayscale’s 2nd amended S-1 is the much important improvement arsenic it indicates the issuer responding to written comments from U.S. Securities and Exchange Commission (SEC) staff. Seyffart noted the amendment suggests Grayscale is advancing its BNB ETF based connected nonstop SEC feedback

Grayscale archetypal filed its archetypal S-1 for the Grayscale BNB Trust precocious past year, proposing to database nether the ticker GBNB connected Nasdaq. Vaneck registered a competing spot successful April and submitted its S-1 soon after. Both firms are present successful progressive amendment cycles with the regulator.

BNB is the autochthonal token of BNB Chain (formerly Binance Smart Chain) and serves arsenic the superior inferior plus wrong the Binance ecosystem, utilized for trading interest discounts, token launches, and onchain governance. At existent prices, BNB carries a marketplace capitalization supra $87 billion, making it the third-largest crypto plus by market cap aft bitcoin and ether.

Neither filing includes staking, an omission that reflects ongoing regulatory uncertainty astir whether staking yields connected ETF-held assets would trigger further securities instrumentality requirements, the aforesaid caution that shaped aboriginal iterations of the spot ether ETF applications.

Structure and Custody

Coinbase volition enactment arsenic custodian for some the Grayscale and Vaneck BNB ETF products, holding BNB connected behalf of money shareholders. That mirrors the custody statement utilized for some firms’ spot bitcoin and ether funds. Before either merchandise tin statesman trading, the SEC indispensable besides o.k. a 19b-4 regularisation alteration filed by Nasdaq, permitting the speech to database the caller instrument.

The simultaneous amendments connected May 16 awesome competitory urgency. In some the spot bitcoin and spot ether ETF races, the issuer that achieved regulatory support archetypal captured the bulk of aboriginal organization inflows. Both Grayscale and Vaneck look to beryllium good alert of that dynamic.

Lastly, with whale accumulation heating up, $700 could beryllium a near-term BNB terms people (contingent connected ETF approval), drafting parallels to the flow-driven terms re-ratings that followed the bitcoin and ether ETF launches.

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