VanEck Files for a BNB Spot ETF, If Approved, It Would Become the First BNB ETF in the US Market

VanEck, a US-based investment management firm, has filed an application to launch a Binance Coin ETF in the US State of Delaware.

VanEck, a US-based investment management firm, has filed an application to launch a Binance Coin ETF in the US State of Delaware.

If approved, it would become the first BNB ETF in the US market.

What Happened: Investment management firm VanEck has submitted an application to launch a Binance (CRYPTO: BNB) Coin ETF in the State of Delaware, according to a report by Block.

This is the fifth time that the global investment management company has filed an application in connection with the ETF market. Previously, it had applied to launch Bitcoin, Ethereum, Solana and Avalanche ETFs.

Earlier this year, 21Shares filed an application to launch a Binance Coin ETF in the US. However, the firm’s application was not accepted by the SEC.

This would be the first BNB ETF in the US. While 21Shares already has a similar investment product, it cannot claim the first such product status as it is not registered in the US.

The 24-hour volume of BNB is now at $1,725,542,807. In the last 30 days, the BNB market has grown by about 1.1%. At one point on April 1, the market touched a peak of $90,373,731,923.

The price of BNB is now at $602.16. In the last seven days, it has dropped by 4.7%. In the last 24 hours alone, the token has dropped by 2.5%.

After news of VanEck's filing broke, the trading volume of BNB increased by at least 42%.

Why It's Important: The filing of the BNB ETF application is just a preliminary step and the approval from the SEC is far from guaranteed.

Binance, the issuer of BNB, has a history of regulatory challenges and scrutiny from authorities around the world. The issues raised include concerns over compliance with financial regulations, anti-money laundering (AML) regulations, and the company’s operational practices.

Earlier this year, the SEC also sued two major crypto firms, Coinbase Global Inc (NASDAQ:COIN) and Binance, for allegedly defrauding investors.

The regulator has also expressed concerns over the liquidity of crypto markets and the ability of institutions to exit their positions in a timely manner.

Earlier this year, the SEC approved several crypto ETFs from firms like Bitwise and WisdomTree.

The total market cap of the Bitcoin (BTC) Spot ETF market remains at $95.70B. The market cap of the BTC Futures ETF market is $2.12B. This means that the total market cap of the entire Bitcoin ETF market is $98.08B.

The total market cap of the Ethereum (ETH) ETF market stands at $6.81B.

According to reports, Grayscale alone manages nearly $17 billion in Bitcoin ETFs.