REX Shares, in partnership with Osprey Funds, filed with the U.S. Securities and Exchange Commission (SEC) on August 27 for a Binance Coin (BNB) Staking ETF. This is the first attempt to launch a regulated U.S. product that combines exposure to BNB’s market price with income from staking rewards.
BNB is the native cryptocurrency of Binance Smart Chain (BSC), a blockchain used for decentralized applications and token trading. Until now, U.S. investors seeking exposure to BNB relied on direct purchases through exchanges or offshore products. The proposed ETF would bring BNB into traditional brokerage accounts, while also distributing staking rewards as dividends.
Fund Promises Staking Dividends Alongside Price Exposure
According to the SEC prospectus, REX-Osprey filed an N-1A registration statement under the Investment Company Act of 1940. The ETF structures itself as a C-corporation and uses a Cayman Islands subsidiary to stake BNB and distribute rewards back to shareholders.
At least 80% of the fund’s assets will be invested directly in BNB, while up to 40% can be allocated to BNB-linked products listed abroad. The prospectus also allows the fund to use liquid staking tokens, which keep assets accessible while still generating yield. Staking rewards are projected at 3% to 5% annually.
The filing adds new transparency on operations. The ETF will trade on the Cboe BZX exchange and rely on a third-party crypto custodian to hold BNB. Staking will be delegated to validators, some of which may have nominal ownership ties to REX Advisers affiliates, though oversight will remain with the custodian.
BNB Price Rebounds as Analysts See November Launch
Following the news, BNB price rose nearly 3% on August 27, climbing from about $831 to above $860.
ETF expert James Seyffart suggested the BNB Staking ETF could launch as early as November 2025, since the 1940 Act structure often moves faster than spot ETF applications. Fellow analyst Eric Balchunas described staking-based ETFs as a “new frontier” for bridging traditional finance and digital assets.
The filing also places REX-Osprey in direct competition with asset manager VanEck, which earlier applied for a spot BNB ETF that would only track price. By contrast, REX-Osprey’s approach integrates staking rewards, a feature that may prove more attractive to institutions seeking dividend-style returns.
