Just-In: Grayscale Files Amended S-1 For BNB Coin ETF With SEC
Highlights
- Grayscale's second amended S-1, outlining its proposed spot BNB ETF, was submitted to the SEC.
- The ETF will allow investors to gain direct exposure to BNB without purchasing the token
- While the SEC maintains a regular review on the BNB ETF application, the asset has “unique regulatory hurdles,” Bloomberg analyst James Seyffart said.
Grayscale Investments has advanced its plans to launch a spot BNB ETF available in the U.S. For this, it filed a second amended S-1 registration statement with the U.S. Securities and Exchange Commission.
Grayscale Submits Updated S-1 For BNB ETF
The new filing is part of the asset manager’s attempts to launch a regulated investment product that is pegged to BNB, Binance’s native crypto. The amendment comes after Grayscale’s previous revised application made during the SEC review process.
Since the U.S. regulators approved the spot Bitcoin and Ethereum ETFs in 2024, spot crypto ETFs have become a key spotlight for digital asset companies. Unlike futures-based products, spot ETFs rather directly own the underlying crypto.
Moreover, they offer direct exposure to investors without them requiring to hold wallets or private keys. Thus, Grayscale is moving forward with several altcoin ETFs, including the HYPE ETF for which also it filed an amended S-1.
However, Grayscale’s updated filing comes amidst ongoing regulatory uncertainty surrounding BNB’s legal status in the U.S. Earlier, the SEC previously claimed in its lawsuit against Binance and founder Changpeng Zhao that BNB could be considered a security. This statement added to the woes of any investment vehicle associated with the token.
The revised registration statement will likely cover issues related to custody and investor protection provisions, as well as market surveillance. In response to the regulatory requirements related to crypto products, ETF issuers have increasingly turned to surveillance-sharing agreements and third-party custodians.
What Do Analysts Say?
Bloomberg ETF analyst James Seyffart in a X post noted that the SEC has been careful about how it has dealt with crypto ETFs. He said, “The SEC has been deliberate in its approach to crypto ETFs, and BNB faces unique regulatory hurdles.”
He further added, “This amendment shows Grayscale is willing to engage with the SEC’s feedback, but approval is not guaranteed.”
If the SEC finally approves this fund, it would further help grow the crypto ETF sector to include other products. It currently includes Bitcoin, Ethereum, Solana, and XRP funds listed in the U.S. It would also make it easier for institutional and retail investors to get a regulated exposure in BNB without actually holding it, but via a traditional brokerage account.
Nonetheless, the market reaction around BNB coin price remained subdued as the SEC is still receiving Grayscale’s application.
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