- REX-Osprey’s proposed BNB + Staking ETF will invest at least 80% in BNB, offering both exposure and staking yield for institutional investors.
- The filing comes amid rising inflows into Bitcoin and Ethereum ETFs, signaling stronger institutional appetite for altcoin-based funds.
The option to earn staking rewards may soon be available to institutional investors exposed to Binance Coin (BNB) thanks to REX Shares and Osprey Funds (REX-Osprey). The firms filed with the U.S. Securities and Exchange Commission (SEC) to create a BNB exchange-traded fund (ETF) with integrated staking yield. This shows how asset managers are moving their focus beyond Bitcoin and Ethereum to also include altcoins and other blockchain features like staking.
Should the ETF be approved and under the presumption that there would be improvements to Binance’s cross-chain interfaces, it would be a leap forward for the BNB ecosystem as it would integrate traditional finance with yield-generating decentralized finance (DeFi) possibilities.
Why the REX-Osprey BNB + Staking ETF Stands Out
According to the SEC filing, the proposed ETF would allocate at least 80% of its capital to BNB, either directly or via a Cayman Islands subsidiary, while the remainder could go into other ETFs providing BNB exposure. A key feature is that the fund intends to stake its holdings on the BNB Chain’s proof-of-staked-authority network, where validators typically generate 1.5% to 3% annual yields.
To manage liquidity, the fund will ensure no more than 15% of net assets remain illiquid, addressing BNB’s seven-day unbonding period. Custody of assets, including liquid staking tokens, will be handled by Anchorage Digital Bank, a regulated crypto custodian. Unlike traditional spot ETFs, the REX-Osprey product plans to process creations and redemptions in cash, while potentially engaging with liquid staking protocols to balance yield generation with liquidity needs.
Institutional Appetite for Altcoin ETFs Is Rising
Bitcoin ETFs recorded inflows ranging from $3 billion in April to $6 billion in July, while Ether ETFs attracted $5.4 billion in July and $3.7 billion in August so far, according to SoSoValue data. Trading volumes have also reached new highs, with Ether ETFs alone logging $17 billion in trades in mid-August, setting a record.
BNB has yet to see a fully approved U.S.-based ETF. However, VanEck already filed for a similar BNB staking ETF in May 2025, making the REX-Osprey proposal the second major attempt to bring the asset into mainstream ETF markets. Analysts suggest that broader acceptance of altcoin ETFs could pave the way for the long-anticipated “altcoin season,” giving tokens like BNB greater institutional exposure.
As highlighted in our previous article, Ethereum hit a record high when it soared to an all-time high of $4,956 following Jerome Powell’s comment regarding the project. This rally leaves analyst confident about a possible start of altseason with Bitcoin dominance declining.
