The REX-Osprey BNB + Staking ETF is a proposed BNB staking ETF that would stake BNB holdings and use liquid staking tokens to pay regular staking compensation, seeking approval under the Investment Company Act and listing on the Cboe BZX Exchange.
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REX Shares and Osprey Funds filed an N-1A to list a BNB staking ETF on Cboe BZX.
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The fund aims to stake most BNB holdings, with up to 15% of net assets illiquid due to unbonding periods.
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Custodians: Anchorage Digital Bank National Association for digital assets and U.S. Bank for traditional holdings; seeks staking rewards via direct staking and liquid staking tokens.
BNB staking ETF: REX-Osprey seeks SEC approval for a BNB staking ETF under the Investment Company Act — learn fund structure and staking payouts.
What is the REX-Osprey BNB + Staking ETF?
BNB staking ETF refers to an exchange-traded fund that holds BNB and seeks to generate staking rewards by staking BNB and investing in liquid staking tokens. The REX-Osprey BNB + Staking ETF filing indicates it will list on the Cboe BZX Exchange and operate under the Investment Company Act.
How will the fund stake BNB and distribute rewards?
The fund plans to stake a significant portion of its BNB holdings, noting a seven-day unbonding period for staked BNB. It will also buy liquid staking tokens to capture staking rewards without the illiquidity of direct staking. Rewards will be paid via increases in token conversion rates or by increasing token balances.
What custodial and allocation safeguards are described?
Anchorage Digital Bank National Association is named as the custodian for digital assets while U.S. Bank will hold traditional assets. The filing limits illiquid assets to no more than 15% of net assets and allocates at least 40% of assets to other ETFs or ETPs that invest in BNB.
How does this compare to other staking ETFs?
The REX-Osprey application follows REX Shares’ earlier Solana + Staking ETF and other BNB-related filings. Unlike many spot crypto ETFs, these staking ETFs seek approval under the Investment Company Act, enabling staking activities within a regulated fund structure.
| Fund | Primary Activity | Regulatory Path | Notable Custodians |
|---|---|---|---|
| REX-Osprey Solana + Staking ETF | Direct staking + liquid staking | Investment Company Act | Anchorage Digital Bank (digital assets) |
| REX-Osprey BNB + Staking ETF (proposed) | BNB staking + liquid staking tokens | Investment Company Act (seeking) | Anchorage Digital Bank; U.S. Bank |
Why does the filing name other BNB ETPs and what does that mean?
The filing references the 21Shares Binance BNB ETP (Switzerland) and an REX-Osprey Binance BNB ETP yet to launch as potential vehicles in which the fund may invest. These named ETPs are presented as part of the fund’s plan to allocate at least 40% of assets to other funds with BNB exposure.
Frequently Asked Questions
Will the fund use liquid staking to avoid illiquidity?
Yes. The filing specifically cites liquid staking protocols as a way to capture staking rewards while mitigating illiquidity, offering tokens that represent staked BNB and remain tradable.
How much of the fund can be illiquid?
The filing caps illiquid assets at no more than 15% of the fund’s net assets, aligning with standard liquidity safeguards for registered funds operating under the Investment Company Act.
Key Takeaways
- Regulatory path: REX-Osprey seeks approval under the Investment Company Act to enable active staking inside a registered ETF structure.
- Staking mechanics: The fund plans direct staking and liquid staking tokens, with a seven-day unbonding period for BNB.
- Custody & allocation: Anchorage Digital Bank and U.S. Bank are custodians; up to 15% illiquid assets; at least 40% may be invested in other BNB ETPs or ETFs.
Conclusion
The proposed REX-Osprey BNB + Staking ETF aims to bridge regulated fund structures and on-chain staking, offering investors BNB exposure plus staking rewards under the Investment Company Act. Watch for SEC review and further filings detailing mechanics and third-party ETP allocations.
Author: COINOTAG · Published: 2025-08-27 · Updated: 2025-08-27
