IT sector goes beyond chipmakers

Saturday, Aug 30, 2025 1:45 am ET2min read

The article discusses that the technology sector is not solely comprised of chipmakers, despite Nvidia (NVDA) being a major player. The VanEck Vectors Semiconductor ETF (VGT) tracks the performance of semiconductor companies, but its constituents include other technology companies beyond chipmakers, such as software and equipment providers. This diversification helps mitigate the impact of a single company's performance on the ETF.

The technology sector is often associated with chipmakers, but the VanEck Vectors Semiconductor ETF (VGT) demonstrates that this sector is much more diversified. While Nvidia (NVDA) is a major player, the VGT tracks the performance of semiconductor companies, including software and equipment providers. This diversification helps mitigate the impact of a single company's performance on the ETF.

In the realm of cryptocurrencies, a new trend is emerging with the potential to offer investors attractive yields. REX Shares and Osprey Funds (REX-Osprey) have filed with the US Securities and Exchange Commission for a BNB exchange-traded fund (ETF) featuring staking yield. The filing comes as asset managers step up their push into crypto ETFs and yield-generating strategies [1].

According to the filing, the REX-Osprey BNB + Staking ETF would allocate at least 80% of its capital to BNB (BNB), the native token of the Binance ecosystem, or gain exposure to the asset through a Cayman Islands subsidiary. The remaining assets could be invested in other ETFs or exchange-traded products offering additional BNB exposure. BNB staked on the Binance Chain, which uses a proof-of-staked-authority consensus, is estimated to generate annual yields of 1.5% to 3% for the network's validators [1].

The new ETF, if approved, may differ from the Osprey Funds’ BNB Chain Trust, launched in 2024. While still offering exposure to BNB, the BNB Chain Trust is geared toward accredited investors and has a minimum buy-in of $10,000. The REX-Osprey BNB + Staking ETF is similar to another BNB ETF filed in May 2025 by asset manager VanEck — the first BNB fund proposed in the United States. VanEck is also seeking permission to capture BNB’s staking yield [1].

The filing also indicates that the fund intends to stake all of its BNB, but only if its adviser can keep illiquid assets under 15% of the portfolio. Anchorage Digital Bank has been appointed custodian for the fund’s BNB, related holdings, and liquid staking tokens [1].

Investor trading within US crypto ETFs has picked up in the past few months. Bitcoin (BTC) ETFs have seen monthly inflows ranging from $3 billion in April to $6 billion in July. Meanwhile, Ether (ETH) ETFs saw a $5.4 billion inflow in July and a $3.7 billion inflow so far in August. During the week of Aug. 15, Bitcoin and Ether ETFs posted their highest combined trading volume to date [2].

As many crypto enthusiasts await "altcoin season," Bitfinex analysts say a significant rally among such tokens may only happen if more crypto ETFs are approved in the US. Altcoins featured in ETFs awaiting a decision from the SEC include Solana (SOL), Official Trump (TRUMP), and Sui (SUI) [2].

The BNB staking ETF, if approved, could provide investors with a new way to generate passive income from their crypto investments. However, as with any investment, it is essential to conduct thorough research and consider the risks involved.

References:
[1] https://cointelegraph.com/news/rex-osprey-bnb-staking-etf-inflows?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed
[2] https://sosovalue.com

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