Quick Breakdown
- Rex Shares files with SEC for BNB Staking ETF under the Investment Company Act of 1940.
- Staking rewards of 3–5% annually to be distributed as dividends to investors.
- Over $800M in institutional BNB holdings underscore rising corporate adoption.
Rex Shares has moved to bring BNB into the U.S. exchange-traded fund market, filing with the Securities and Exchange Commission (SEC) for a product that would combine direct exposure to the token with staking rewards.
The filing, submitted on August 26, outlines plans for the REX-Osprey BNB Staking ETF, a first-of-its-kind fund that could potentially debut within weeks if approved under the Investment Company Act of 1940. The framework is designed to fast-track approval compared to other spot crypto ETF applications.
Staking Built Into ETF Structure
The fund will operate through a C-corporation and a Cayman Islands subsidiary to manage custody and staking of BNB. This setup is intended to remain SEC-compliant while passing along staking rewards—estimated at 3% to 5% annually on the BNB Chain—as dividends to shareholders.
Custody and staking services are expected to be handled by a regulated partner such as Anchorage Digital, mirroring the structure of Rex’s Solana Staking ETF, which launched earlier in 2025 and already holds over $133 million in assets under management.
Rex filing for a BNB Staking ETF, under the 40 Act a la $SSK pic.twitter.com/YFjHBEFw4y
— Eric Balchunas (@EricBalchunas) August 26, 2025
Bloomberg ETF analyst Eric Balchunas highlighted the BNB filing on August 26, pointing to its structural similarities with the Solana product and suggesting strong investor appetite if approved.
Institutional Appetite for BNB Surges
The filing comes as institutional allocations to BNB climb sharply. By the second quarter of 2025, more than 30 publicly listed companies had collectively purchased close to $800 million worth of BNB for their treasuries.
Notable adopters include Nano Labs and BNB Network Company, which view the token as both a diversification tool and a yield-friendly asset. BNB’s appeal lies in its limited supply, ongoing token burns, and low transaction costs, making it especially attractive for income-generating products like staking ETFs.
Regulatory Hurdles Still Ahead
Despite its potential, approval is far from certain. The SEC has previously delayed decisions on Avalanche (AVAX) and Cardano (ADA) ETF applications, citing concerns over market manipulation and custody arrangements.
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