REX-Osprey Funds have made a notable move, filing with the SEC for what would be the first U.S. cryptocurrency ETF to directly incorporate staking rewards—the REX-Osprey BNB + Staking ETF. If approved by REX-Osprey’s initiatives, this product would offer investors exposure to Binance Coin (BNB). Additionally, it gives them the added benefit of earning yield via BNB’s Delegated Proof-of-Stake system.
The fund intends to allocate at least 80% of its assets to BNB itself. Other exchange-traded products that complement the core holding will receive the balance. By staking the ETF’s BNB holdings, the managers project an annual yield somewhere in the range of 1.5% to 3%. In some optimistic scenarios, possibly up to 5%. This approach provides both retail and institutional investors with a new way to pursue income generation. It is layered on top of BNB’s core price performance.
Institutional Infrastructure And Regulatory Strategy
Anchorage Digital Bank is stepping in as custodian. They utilize multi-signature security and professional validators to safeguard assets and streamline staking activities. The ETF will list on the Cboe BZX Exchange, offering institutional-grade liquidity, transparent pricing, and robust trading infrastructure.
By leveraging the Investment Company Act of 1940 pathway, the fund stands to potentially expedite SEC approval. This allows for staking rewards to be paid out as dividends in REX-Osprey’s strategy. REX-Osprey’s earlier Solana staking ETF attracted $161.7 million within two months. This demonstrates the effectiveness of this regulatory strategy.
Looking ahead to 2025, clearer regulations will further support staking-based ETFs. The SEC’s confirmation that liquid staking tokens are not securities paves the way for broader ETF adoption. It offers investors compliant, yield-generating opportunities within a regulated framework.
Market Context And Strategic Implications
BNB is well-positioned for this ETF launch. With a market cap north of $119 billion and around 17 million weekly users on the BNB Chain, the fundamentals are hard to ignore. We’re seeing a shift—institutions like BNC Network and Windtree Therapeutics are adding BNB to their balance sheets for treasury and investment purposes, which is a strong signal.
The REX-Osprey filing is significant. It opens the door for altcoin ETFs that include staking rewards. This could pave the way for similar products featuring Cardano, Avalanche, or Polygon. For investors looking to get crypto exposure—minus the headache of wallet management, but with the added bonus of yield—this REX-Osprey ETF could be a compelling option.Assuming approval, the ETF could hit the market by Q4 2025. That would offer both retail and institutional investors a regulated, income-focused way to access the BNB ecosystem. It would strengthen the link between traditional finance and decentralized yield opportunities.
