REX-Osprey Files for Spot BNB ETF with Staking Under 1940 Act, Eyes Early November Launch

In a significant move poised to reshape the digital asset investment landscape, REX Shares and Osprey Funds have strategically filed for a spot BNB Exchange Traded Fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This filing distinguishes itself by leveraging the Investment Company Act of 1940, a regulatory pathway designed to expedite market entry for certain investment products, potentially allowing the fund to launch in early November. This approach bypasses the more protracted review process typically associated with cryptocurrency ETFs under the Securities Act of 1933, signaling an evolving tactical playbook for firms seeking to bring novel digital asset offerings to market.

• REX Shares and Osprey Funds have filed for a spot BNB Exchange Traded Fund (ETF) with the SEC.
• The filing strategically uses the Investment Company Act of 1940 for an expedited review.
• The proposed product, “REX-Osprey BNB + STAKING ETF,” will offer direct exposure to BNB.
• A crucial feature of the fund is its integrated staking mechanism, providing potential additional yield.
• If approved, shares of the fund are expected to trade on the Cboe BZX exchange.
• The ETF’s creation and redemption processes are designed to operate exclusively on a cash basis.

Strategic Regulatory Pathway for Spot BNB ETF

The product, named REX-Osprey BNB + STAKING ETF, aims to offer investors direct exposure to BNB, the native token of the BNB Smart Chain (BSC). Crucially, the fund structure also integrates a staking mechanism, with a substantial portion of its assets under management intended for staking through trusted intermediaries. This feature could provide an additional yield component for investors, differentiating it from more traditional spot crypto ETFs. Shares of the fund, if approved, are slated to trade on the Cboe BZX exchange, and its creation and redemption processes are structured exclusively on a cash basis.

Leveraging Precedent and Shaping Future Digital Asset Access

This expedited regulatory strategy mirrors the one successfully employed by REX Shares and Osprey Funds for their spot Solana-ETF, which launched in July 2025 following a June filing. Bloomberg Intelligence analyst James Seyffart highlighted the potential for a rapid market debut for the BNB fund, tweeting on August 27, 2025, that it “looks like it could go live in early November. As early as November ~9th/10th” (https://t.co/AbXt4AJBcn). This precedent from the Solana fund, which attracted $161.7 million in its first two months, although modest compared to Bitcoin and Ethereum ETFs, demonstrates the viability of this accelerated approval route.

The strategic use of the Investment Company Act of 1940 for altcoin ETFs indicates a sophisticated understanding of regulatory nuances and a proactive approach to expanding access to the digital asset market. As institutional interest in cryptocurrencies continues to broaden beyond Bitcoin and Ethereum, the successful deployment of such funds could pave the way for a more diverse array of regulated altcoin investment vehicles, potentially democratizing access to these assets for a wider investor base.