Two major investment companies just asked government regulators for permission to launch a new fund that could earn you money simply by holding cryptocurrency. REX Shares and Osprey Funds want to create an investment fund that buys BNB tokens and earns extra income by ‘staking’ them — a process similar to earning interest on a savings account, but with much higher returns.
The new fund promises to pay investors 1.5% to 3% per year just for holding BNB cryptocurrency. The companies filed paperwork with the U.S. Securities and Exchange Commission (SEC), hoping to make this available to everyday investors through their regular brokerage accounts.
The ETF will allocate at least 80% of its capital directly to BNB, Binance’s native cryptocurrency, trading at almost $871. The remaining 20% will flow into other exchange-traded products offering additional BNB exposure, creating a diversified approach within the Binance ecosystem.
Anchorage Digital Bank will act as the custodian, delivering institutional-grade security to address investors’ primary concerns about crypto asset protection. The fund will maintain strict liquidity requirements, limiting illiquid staked assets to under 15% of total holdings to ensure investors can redeem shares for cash when needed.
This liquidity framework will tackle with the biggest challenge in crypto staking: the (seven-day) ‘unbonding’ period required to unstake BNB tokens. Traditional investors balked at locking up capital for extended periods, but the ETF’s structure maintains operational flexibility through liquid staking tokens and other tradeable instruments.
Racing Against VanEck in the Untapped Market
REX-Osprey faces direct competition from asset manager VanEck, which filed a similar BNB ETF proposal in May 2025. Both firms recognize the massive opportunity in BNB staking, as the Binance Smart Chain’s proof-of-stake system offers consistent rewards to validators.
The timing couldn’t be better. Bitcoin ETFs recorded monthly inflows ranging from approximately $3.6 billion to $6 billion in key months of 2025, though some months saw significant outflows. Ethereum ETFs saw $5.4 billion in inflows during July alone. The first week of August 2025 marked a historic milestone when Bitcoin and Ethereum ETFs combined for their highest weekly trading volumes ever, with Ether ETFs alone generating over $17 billion in transactions.
Institutional Appetite Grows for Crypto Yield
Corporate treasuries are increasingly accumulating BNB as a strategic asset. BNB Network Company (BNC) raised $500 million through a private placement specifically for BNB investments, becoming the largest corporate BNB holder. Windtree Therapeutics secured $520 million in financing to build a significant BNB treasury, though its strategy faced challenges leading to its Nasdaq delisting. Nano Labs announced plans to acquire up to $1 billion worth of BNB tokens, with initial purchases already underway.
This institutional momentum reflects a broader shift in how major investors view cryptocurrency. Rather than speculative trading vehicles, they now see established tokens like BNB as legitimate yield-generating assets comparable to dividend-paying stocks or interest-bearing bonds.
The REX-Osprey ETF provides retail investors with access to institutional-grade crypto infrastructure, previously restricted to accredited investors with $10,000 minimum investment requirements, through vehicles like the Osprey BNB Chain Trust. Unlike the Osprey BNB Chain Trust, which primarily targets accredited investors but trades on the OTCQX secondary market, this ETF offers broader access through standard brokerage accounts on a major exchange.
However, according to experts, investors must weigh BNB’s volatility against its yield potential. While 1.5-3% annual staking rewards appear attractive, BNB’s price swings can overshadow these returns. The token jumped 2.5% following the ETF announcement, demonstrating both opportunity and risk in crypto investments.
The pros and cons notwithstanding, the filing represents more than just another investment product. It signals mainstream finance’s embrace of decentralized finance yield strategies, potentially opening floodgates for institutional crypto adoption.
