Grayscale Files for First US-Listed DeFi ETF Amid Market Frenzy

Vaneck Seeks to Launch the First US BNB ETF Amid DeFi Momentum

Cryptocurrency investment manager VanEck has filed an application with the US Securities and Exchange Commission (SEC) to launch the first US-listed exchange-traded fund (ETF) focused on Binance Coin (BNB).

The proposed ETF, dubbed "VanEck Binance Coin ETF," would track the performance of BNB, the native cryptocurrency of popular cryptocurrency exchange Binance. The fund would provide institutional and individual investors with a way to gain exposure to the growing decentralized finance (DeFi) sector.

BNB has been a top performer in the cryptocurrency market, with its value surging over 100% in the past year. The coin's value is closely tied to the growth of the DeFi sector, which has seen significant momentum in recent months.

"BNB has been a key player in the DeFi ecosystem, and we believe that an ETF focused on the coin could provide investors with a unique way to gain exposure to this rapidly growing sector," said Edith Soto, a managing director and portfolio manager at VanEck.

The proposed ETF would be listed on the CBOE BZX Exchange, and would have a total expense ratio of 0.95%. The fund would be actively managed by VanEck's team of investment professionals, who would seek to maximize returns by investing in BNB and other DeFi-related assets.

The application comes as the SEC has been increasing its scrutiny of cryptocurrency ETFs. In recent months, the agency has rejected several applications for ETFs that track the price of cryptocurrencies such as Bitcoin and Ethereum.

However, regulators have been more open to the idea of ETFs that track the performance of specific coins or tokens, such as BNB. VanEck's application is seen as a test case for the SEC's willingness to approve a DeFi-focused ETF.

"The SEC has been clear that it is open to approving ETFs that track specific coins or tokens, as long as they meet certain requirements," said Soto. "We believe that our proposed ETF meets those requirements, and we are confident that it will be approved."

The proposed ETF would be the first US-listed fund focused on BNB, and would provide investors with a way to gain exposure to the growing DeFi sector. The fund's launch would depend on the SEC's approval of VanEck's application.