Grayscale today filed Form S-1 with the U.S. Securities and Exchange Commission (SEC), formally initiating the process to register the Grayscale BNB ETF.
If the application is approved, the fund will track the BNB price as a publicly traded exchange-traded fund (ETF).
The fund, established in Delaware and sponsored by Grayscale, is scheduled to begin trading following SEC approval. According to the prospectus, the Grayscale BNB ETF will hold BNB assets based on the open-source cryptographic protocol running on the BNB Smart Chain, and the value of shares will be determined by the amount of BNB held by the fund. If staking conditions are met, staking income may also be included in the fund’s performance.
The fund aims to list its shares on Nasdaq under the ticker symbol “GBNB”. Grayscale stated that the shares will be created and repurchased in “baskets” of 10,000 shares through authorized participants, and transactions can be made both in kind (with BNB) and in cash.
The application also listed the fund’s primary service providers. Accordingly, Coinbase will act as the prime broker, while Coinbase Custody Trust Company will handle the fund’s custody services. Transfer and administrative transactions will be handled by The Bank of New York Mellon.
Grayscale also warned investors about the risks in the prospectus. It stated that the fund is not an investment firm registered under the Investment Companies Act and therefore will not be subject to some of the legal protections available to traditional mutual funds. The company also stated that the ETF’s investment objective is to track the BNB price and that no leverage or derivatives will be used.
*This is not investment advice.
