- The filing shows how traditional finance is integrating with the rapidly evolving world of digital assets.
- If successful, it may open the door for other cryptocurrencies to gain similar ETF products.
- The SEC’s past hesitations with similar products may affect the timeline for the BNB Staking ETF.
REX Shares, in partnership with Osprey Funds, has applied to the U.S. Securities and Exchange Commission (SEC) to launch a new product: the REX-Osprey BNB Staking ETF.
It is an investment fund that offers market exposure to Binance Coin (BNB) with associated staking rewards to attract investors interested in this area of the market and DeFi Black. The filing structures the BNB Staking ETF as a pioneering move to develop the interface between crypto and traditional finance with faster approval under the Investment Company Act of 1940.
What is the BNB Staking ETF?
The proposed BNB Staking ETF will seek to bring BNB into the mainstream investment portfolio exposure with a staking component. In the fund structure, the custody and staking of the BNB will be managed by a C-corporation and a firm registered in the Cayman Islands. Staking rewards, usually 3-5% APR on the BNB Chain, would then be used to pay dividends to shareholders. Such a strategy enables investors to enjoy the BNB price increase as well as the staking rewards.
💥 NEW: Rex Osprey files with the #SEC for a #BNB + Staking ETF. pic.twitter.com/RFSshZ0vfQ
— CryptosRus (@CryptosR_Us) August 27, 2025
A regulated partner, such as Anchorage Digital, would take on custody and staking and mirror something like the Rex Solana Staking ETF. This would create a stable and controlled environment for investors wishing to enjoy BNB staking.
Growing Institutional Interest in BNB Staking ETF
The move to file the BNB Staking ETF also comes as institutions start to take an interest in BNB at a rapid pace. In the second quarter of 2025, over 30 listed firms invested almost a billion dollars of BNB in treasury management. Companies like Nano Labs and BNB Network Company have adopted the use of BNB as a diversification strategy due to its limited supply continually being burned and low transaction fees.
The increase in the number of companies using BNB indicates a rise in faith against the possibility of BNB as a long-term investment, thus cementing its value in institutional investment. With this, the BNB Staking ETF may satisfy the increasing demand for yield-based products and further drive BNB into the mainstream.
SEC Approval Process Key for BNB Staking ETF Launch
The SEC approval of the BNB Staking ETF is not specific; however, there is an increasing interest in the ETF in question. The question of regulation, especially with references to market manipulation and custody, has led the SEC to defer approving similar ETFs targeting Avalanche and Cardano. A comparable case is when Bitwise filed an S-1 for a Chainlink ETF launch, which also drew attention to how the SEC approaches crypto-related ETFs.
The review done by the SEC will be tremendous in deciding whether Rex Shares, together with Osprey Funds, can launch the BNB Staking ETF. Once accepted, the BNB Staking ETF may be listed as early as November 2025, providing one of the first U.S. regulated products with direct exposure to staked BNB. The regulatory framework that can be used to support the faster review may be relevant to the approval timeline.
Increasing Demand for BNB by Institutions
The rising demand for BNB, particularly among institutional investors, can also be seen in the BNB Staking ETF filing. Other companies using BNB as a treasury asset include Windtree Therapeutics, Nano Labs, and Liminatus Pharma. The use of BNB as a treasury management tool has added to its growing popularity, perhaps due to its application in the DeFi protocol and Binance exchange.
Subsequently, the success of the BNB Staking ETF would manifest in increased use of BNB in the traditional financial world. The ETF may also serve as a bridge to open up the realm of crypto assets to other institutions that may wish to dive into this realm, in a compliant and regulated style.
