Institutional BNB Frenzy: REX-Osprey Joins Race for Spot ETF Approval

Rex Osprey has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch a spot BNB staking ETF, joining other major players in the space. This development follows a similar move by VanEck, which filed earlier in the year for a BNB-based ETF. The REX-Osprey application underscores growing institutional interest in Binance Coin (BNB), as more investment firms seek regulatory approval for exposure to the altcoin in the U.S. market [1].

The BNB price saw a notable rebound following the announcement, with the token gaining 2.5 percent from its intraday low, reaching approximately $861 during the late North American trading session. With a fully diluted valuation of around $120 billion, BNB is currently experiencing heightened bullish momentum, supported by a recent surge in open interest (OI), which has climbed to over $1.67 billion [1]. This increase in OI suggests that speculative and institutional positions are building, further reinforcing market optimism.

The institutional adoption of BNB is accelerating, with several companies integrating the token into their treasury strategies. For instance, the BNB Network Company (tBNC) recently raised $500 million through a private investment in public equity (PIPE) offering to fund its BNB treasury strategy. Similarly, U.S.-listed biotech firm Windtree Therapeutics has secured a $500 million equity line of credit and a $20 million stock purchase agreement to support its BNB treasury initiatives. Meanwhile, Hong Kong-based Web3 infrastructure provider Nano Lab has launched a $500 million convertible note offering, aiming to acquire up to $1 billion in BNB, with a long-term objective of holding 5–10% of the token’s total supply [1].

The increasing demand for BNB from institutional investors is expected to amplify the effects of the ongoing crypto bull market, particularly as the token’s supply remains fixed and ongoing Binance-led quarterly burns continue to reduce circulating supply. This supply-driven scarcity, combined with the growing appetite for BNB as a strategic asset, is likely to further widen the gap between demand and supply. Analysts suggest that BNB is well positioned to enter a parabolic phase in the 2025 bull cycle, particularly with the approval of spot BNB ETFs potentially enhancing its visibility and accessibility to a broader range of investors [1].

Recent data also highlights continued inflows into U.S. spot crypto ETFs, with Ethereum and Bitcoin leading the way. On the most recent trading day, Ethereum spot ETFs saw a net inflow of $455 million, continuing a four-day streak of positive flows. Bitcoin spot ETFs recorded a net inflow of $88.2049 million, with BlackRock's IBIT leading the trend. These figures underscore the broader institutional appetite for crypto assets and may signal that demand for altcoin ETFs, such as the proposed REX-Osprey BNB offering, could gain further momentum in the near term [2].

Source:

[1] Binance Coin Rebounds After REX-Osprey Filed for BNB Staking ETF (https://coinpedia.org/news/binance-coin-rebounds-after-rex-osprey-filed-for-bnb-staking-etf/)

[2] Rex is applying to launch an ETF that supports BNB staking (https://www.chaincatcher.com/en/article/2200953)