Rex-Osprey Aims to Unlock BNB Staking Rewards for Mainstream Investors

REX-Osprey has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a BNB staking exchange-traded fund (ETF) that would track the performance of Binance Coin (BNB), including staking rewards. The fund, intended to be listed on the Cboe BZX Exchange, will allocate at least 80% of its net assets directly in BNB or through a Cayman Islands subsidiary and up to 20% in other ETFs or ETPs that provide exposure to BNB. It aims to stake the entirety of its BNB holdings while maintaining sufficient liquidity, with an unbonding period of approximately seven days for staked tokens. The fund will distribute staking rewards, net of fees, to investors and utilize liquid staking tokens to allow yield generation without complete illiquidity [1].

The timing of the filing aligns with a significant price increase in BNB, which reached an all-time high above $882 in August, driven by record network activity of 16.8 million weekly active users on the BNB Chain. The token has grown to a market capitalization exceeding $119 billion, supported by rising institutional adoption and corporate treasury strategies. This institutional interest is evident in the initiatives of firms like Windtree Therapeutics and Nano Labs, which have announced BNB treasury strategies, and B Strategy, which launched a $1 billion BNB-focused investment vehicle [1].

REX-Osprey's BNB staking ETF proposal is informed by recent SEC guidance that clarified the regulatory status of liquid staking arrangements, such as stETH, as non-securities. This development has reduced legal uncertainty around staking-based products, potentially accelerating approval timelines. The filing also follows the successful launch of the firm’s Solana staking ETF earlier this year, marking a continuation of its strategy to bring institutional-grade staking products to the U.S. market [1].

The ETF’s structure includes a mix of direct staking and liquid staking protocols, with staked BNB tokens delegated through Anchorage Digital Bank to validators. This approach aims to balance yield generation with liquidity requirements, ensuring compliance with SEC regulations that limit illiquid assets to no more than 15% of the fund’s total assets. The structure allows for regular staking compensation payouts, either through adjustments in the conversion rate of liquid staking tokens or direct balance increases [2].

The proposed ETF represents a significant development in the broader trend of institutional adoption of crypto assets. Companies have increasingly viewed BNB as a strategic treasury management tool, with several corporations raising funds through equity lines of credit to finance BNB treasury strategies. The growing interest in BNB as a reserve asset suggests a shift in how institutions view the token, moving from speculative exposure to a more structured, yield-generating investment [4].

However, the staking mechanism introduces unique risks, including slashing penalties for validator misbehavior and governance risks due to the concentration of validation power among Binance-related entities. Additionally, technology vulnerabilities could threaten staked assets. The ETF must navigate these challenges while adhering to SEC regulations, particularly in managing the illiquidity associated with staking to remain within the 15% threshold [1].

The BNB staking ETF filing has coincided with broader market dynamics, including a surge in demand for spot altcoin ETFs and increased regulatory clarity in the U.S. and globally. The filing also reflects the growing convergence between traditional finance and crypto markets, with regulated products like staking ETFs offering institutional investors a structured way to access yield generation without direct exposure to the complexities of staking pools and wallet management [3].

Source:

[1] REX-Osprey Seeks SEC Approval for BNB Staking ETF After Solana Success (https://finance.yahoo.com/news/rex-osprey-seeks-sec-approval-151857998.html)

[2] Rex-Osprey Submits Filing to List BNB Staking ETF (https://finance.yahoo.com/news/rex-osprey-submits-filing-list-145954254.html)

[3] Rex Shares Files For A BNB Staking ETF (https://www.banklesstimes.com/articles/2025/08/27/rex-shares-files-for-a-bnb-staking-etf/)

[4] 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/)