REX Shares and Osprey Funds submit application documents to the US SEC for a spot BNB ETF with staking functionality

PANews reported on August 27th that, according to The Block, REX Shares and Osprey Funds jointly submitted an N-1A registration statement to the U.S. Securities and Exchange Commission (SEC) on Tuesday, aiming to manage the first U.S. spot BNB ETF that may include staking functionality. The proposed fund aims to provide direct exposure to the price of BNB, the native cryptocurrency of BNB Chain.

The ETF will be listed and traded on the Cboe BZX exchange. Its BNB holdings will be held by an unnamed cryptocurrency custodian, and staking may be delegated to third-party validators, including those in which REX Advisers affiliates hold a nominal stake. The product plans to stake a significant portion of its BNB holdings, potentially increasing returns for investors through staking rewards earned on the BNB Chain. The fund will process subscriptions and redemptions in cash rather than physical form. However, it may also interact with liquid staking protocols that issue tradable staking derivatives, allowing it to maintain liquidity while also generating staking returns. Bloomberg ETF analyst James Seyffart stated that the proposed REX-Osprey BNB staking ETF could be listed as early as November 9th, mirroring the expedited alternative path used to secure approval for the REX-Osprey Solana staking ETF.