USDVanEck Drops Staking From Proposed BNB ETF as Regulatory Pressure Mounts
Updated Filing Signals Caution Amid Uncertain SEC Policy Toward BNB
TL;DR
- VanEck’s amended S-1 for its spot BNB ETF removes all staking features and stresses regulatory uncertainty around BNB.
- The firm warns the ETF may face dissolution if BNB is deemed a security, despite past court decisions on secondary sales.
- The updated filing positions VBNB for Nasdaq listing while signaling a more conservative path than VanEck’s staking-enabled SOL ETF.
VanEck’s newest S-1 amendment for its proposed spot BNB exchange-traded fund lays out a markedly more cautious stance than its original May 2025 filing, stripping out every reference to staking and making clear the product will launch without any yield-generating features. The filing, submitted around November 21, positions the “VBNB” ETF for listing on Nasdaq and underscores that the trust “will not employ its BNB in Staking Activities and accordingly will not earn any form of staking rewards or income of any kind.” The document adds that “there can be no assurance that the Trust will engage in any Staking Activities,” signaling that even future activation is uncertain. The reversal contrasts with the earlier version that allowed for staking “from time to time” through selected providers, a shift that reflects the firm’s new risk posture around an asset that remains entangled with regulatory overhang despite its size on major crypto price index dashboards.
VanEck frames the decision as a response to ongoing ambiguity about BNB’s legal status, explicitly acknowledging that the trust may be forced to dissolve or cease operations if the SEC or a federal court determines that BNB is a security. This caution persists even after a U.S. federal judge ruled in July 2024 that secondary sales of BNB did not constitute securities transactions, a nuance the filing notes while stressing that regulatory outcomes remain unpredictable. The updated language highlights the SEC’s past classification of dozens of digital assets—including BNB—during its 2023 actions against Binance and its U.S. affiliate, amplifying operational risks tied to the network’s history. VanEck warns that prohibiting staking “could negatively affect the value of the Shares,” acknowledging that ETF performance may lag direct BNB holdings if staking rewards continue to influence crypto price movements.
The filing reiterates structural details of the ETF, designed to hold physical BNB and track the MarketVector BNB Index, adding a potential milestone for the broader market if regulators approve the first U.S. spot BNB product. Such approval would open regulated brokerage and retirement-account pathways for the fifth-largest cryptocurrency by coin market cap, a significant expansion for BNB’s investor base. The firm, which oversaw roughly $78 billion across 69 ETFs earlier in 2025, positions VBNB alongside its existing spot Bitcoin and Ethereum ETFs while adopting a more conservative format than its Solana ETF, which does allow staking. Commentary cited around the filing captures that sentiment, with one observer noting that “TradFi admitting BNB is too big to ignore” shows how fast altcoins migrate from niche trading assets to institutional allocation targets as spot ETFs broaden across the market.
The amendment also acknowledges the opportunity cost created by avoiding staking from launch, hinting at a possible “opt-in later” model if U.S. policy matures. VanEck leaves the door open to activating staking through a future prospectus supplement once regulatory clarity improves, though no timeframe is suggested. The timing aligns with a broader wave of altcoin ETFs gaining traction in the United States—from XRP to DOGE—as regulators tolerate a wider set of assets in ETF wrappers. For BNB, the updated filing reflects a balancing act: gaining U.S. ETF legitimacy while minimizing regulatory triggers that could stall or block approval. The narrative emerging from the amendment signals a strategic trade-off—prioritizing a cleaner regulatory profile over yield-enhancing mechanics—as crypto price and coin market cap metrics increasingly intertwine with ETF flows and institutional exposure.
This article has been refined and enhanced by ChatGPT.
