REX-Osprey’s new filing for a BNB staking ETF reveals a sophisticated structure designed to comply with SEC regulations.
The filing indicates the fund will gain its BNB exposure primarily through a Cayman Islands subsidiary, a common workaround for funds holding assets that may be deemed unregistered securities.
A critical operational detail is the staking mechanism. The prospectus states the fund will stake 100% of its BNB, but only if its advisor can ensure that these otherwise illiquid staked assets constitute less than 15% of the portfolio.
This is a crucial liquidity threshold that allows for daily share redemptions. Anchorage Digital’s role as custodian for both native BNB and liquid staking derivatives will be key to managing this balance.
