REX Shares and Osprey Funds filed to list a BNB staking ETF on the Cboe BZX Exchange, with the SEC reviewing the submission as of August 27, 2025. The BNB staking ETF would stake most Binance Coin (BNB) holdings to deliver staking rewards while keeping liquidity through select protocols. Anchorage Digital Bank National Association will custody digital assets, and U.S. Bank will hold cash and securities. The Rex-Osprey approach mirrors their Solana + Staking ETF, the first U.S. staking fund cleared under the Investment Company Act. The aim is a compliant, yield-focused entry in U.S. crypto ETFs for investors who want access and income.
REX Shares and Osprey Funds
Rex-Osprey built credibility with July’s Solana + Staking ETF, proving staking can exist in a regulated wrapper. With the BNB staking ETF, the managers are extending that template to Binance Coin (BNB) while adding flexibility via liquid solutions. The filing highlights a strategy to capture staking rewards without sacrificing day-to-day tradability. For investors who want on-exchange access and familiar fund plumbing, the BNB staking ETF could bridge crypto-native yield and traditional rails.
Cboe BZX Exchange listing
The fund seeks to list on the Cboe BZX Exchange, using familiar market-making and surveillance standards. Beyond direct exposure, the strategy allocates at least 40% to ETFs or ETPs tied to BNB, including the 21Shares Binance BNB ETP and the yet-to-launch Rex-Osprey Binance BNB ETP. This mix is designed to support liquidity while focusing on staking rewards. If approved, the BNB staking ETF would slot into U.S. crypto ETFs alongside prior products but with a clear yield twist.
Staking rewards strategy
The prospectus states the fund intends to stake “all its Reference Asset [BNB] holdings,” while allowing up to 15% in illiquid assets. To maintain flexibility, the BNB staking ETF can invest in liquid staking protocols that provide liquidity benefits alongside rewards. Payouts may come through increased token balances or conversion rate changes, mirroring on-chain accrual. The goal is straightforward: maximize staking rewards while keeping the portfolio responsive to flows.
Custodianship and safeguards
Anchorage Digital Bank National Association will handle crypto custodianship, while U.S. Bank oversees traditional custody, creating a dual-control structure. The filing notes operational realities like BNB’s unbonding period (seven days), which the managers expect to navigate with liquid holdings. That buffer helps the BNB staking ETF manage creations, redemptions, and market moves. Combined custodianship and procedures aim to reduce counterparty and operational risks without cutting yield.
Investment Company Act edge
Like the Solana + Staking ETF, this filing comes under the Investment Company Act rather than the spot route. That choice matters for the BNB staking ETF because the SEC has historically been more receptive to registered fund structures that manage assets and income. The framework can also tailor disclosures, valuations, and liquidity programs. In a market still parsing spot ETF vs staking ETF pathways, this route may be more approvable.
Spot ETF vs staking ETF
A spot ETF aims to track asset price, while a staking wrapper seeks both price exposure and on-chain yield. The SEC has been selective with spot approvals, but has shown openness to registered funds with staking under the Investment Company Act. For investors, a BNB staking ETF adds a yield engine but also introduces staking-specific risks and processes. Clear disclosures on slashing, validator choice, and liquidity are therefore essential to the mandate.
Competitive pressure from VanEck
VanEck filed its own BNB ETF with a staking component in May 2025, setting the stage for competition. Rex-Osprey’s timing, fresh off a successful Solana + Staking ETF debut, could be a key edge in the race. If the SEC advances multiple proposals, liquidity, fees, and staking execution will decide winners. For investors, competing BNB staking ETF options may drive better pricing and transparency.
Liquid staking protocols
The filing allows use of liquid staking protocols to smooth redemptions and tactical shifts. That design helps the BNB staking ETF maintain market access even when validators are in the unbonding period. It also diversifies operational routes to staking rewards and reduces single-point dependencies. Execution details—validator selection, fees, and governance—will matter to net yields and risk.
Frequently asked questions about BNB staking ETF (FAQ)
What is a BNB staking ETF?
A BNB staking ETF is a regulated fund that holds Binance Coin (BNB) and stakes it to earn staking rewards, aiming to deliver both price exposure and on-chain yield in a familiar ETF format.
How are staking rewards paid?
In the proposed structure, rewards can accrue as increased token balances or via conversion rate changes, which the BNB staking ETF reflects in net asset value and distributions.
Is the unbonding period a liquidity risk?
BNB’s unbonding period (seven days) can slow redemptions from validators. The BNB staking ETF plans to use liquid staking protocols and exchange-traded holdings to help manage day-to-day liquidity.
How is this different from a spot ETF?
A spot ETF tracks asset price only. A BNB staking ETF adds on-chain yield and staking mechanics, which introduces validator, protocol, and operational considerations under the Investment Company Act.
Who are the custodians?
Anchorage Digital Bank National Association will custody digital assets, and U.S. Bank will custody cash and securities, providing a dual-layer custodianship model.
Sources to this article
- SEC (2025) REX Shares and Osprey Funds BNB Staking ETF filing under the Investment Company Act (Form N-1A/Prospectus). U.S. Securities and Exchange Commission.
- Cboe (2025) Cboe BZX Exchange listing application materials for digital asset-related funds. Cboe Global Markets.
- 21Shares (2025) 21Shares Binance BNB ETP product factsheet. 21Shares AG.
- Anchorage Digital (2025) Anchorage Digital Bank National Association custodial services overview. Anchorage Digital.
