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BNB coin ETFs prospects just got a whole lot better courtesy of VanEck’s latest filing. The company is reportedly planning to create a trust entity for an upcoming BNB ETF as revealed through a recent application filed in Delaware.
VanEck’s recent filing marks the first attempt at making BNB ETFs a thing. This is important for a couple of reasons. For example, Binance and the BNB chain have achieved considerable success over the years.
A lot of altcoin ETFs could be in play this year. ETF expectations are already high for cryptos such as Solana, XRP, Cardano among others.
ETFs allow a more regulated exposure to retailers as well as institutions in risky assets such as cryptos. In addition, ETF approvals are usually followed by hype and price gains for an asset if it actually goes thorugh.
So, let us take a look at what’s going on with BNB and what the chances of a BNB ETF approval look like.
Could BNB be a darling for institutions?
Binance’s dominant position in the market combined with BNB’s robust utility highlight the cryptocurrency’s appeal to investors. It is thus no surprise that institutions are increasingly yearning for exposure to BNB coin. But could BNB ETFs be a much more attractive than ETH ETFs or will they end up suffering a similar fate?
ETH price action has so far fallen to its pre-ETF approval unlike Bitcoin, whose demand was notably higher once its ETFs were approved. In fact, it recently dipped lower than its lowest price point in 2024.
ETH’s bearish performance and low demand from ETF raises concerns that BNB could end up on a similar path. Especially considering that BNB chain has lower chain revenue, TVL and a lower marketcap.
BNB coin price action offers a confidence boost
ETH’s post ETF performance has undoubtedly raised concerns about whether other altcoins could perform better after ETF approvals. However, BNB price action offers a different school of thought.
Unlike ETH, BNB has so far managed to hold on to a decent premium from its 2024 lows, despite recent market headwinds.
To put things into perspective, BNB’s $600 press time price tag was approximately a 24% discount from its $793 peak price in December last year. On the other hand, the same price point was still up by over 108% from its lowest price in 2024.
The two coins are not that much different in terms of circulating supply although BNB coin is slightly higher by about 22 million coins. Nevertheless, BNB is still trading at a notably lower price tag. About a third the price of ETH.
BNB’s price tag may be more attractive due to the lower price tag. However, other factors come into play. For example, BNB chain may be more appealing due to lower fees and faster transactions compared to Ethereum.
Ethereum does take the cake in some characteristics such as broader developer support and a more advanced decentralized ecosystem. However, the differences especially those in favor of BNB chain and BNB’s price tag, may determine how well BNB ETFs will be received by the investor class.
For now, BNB coin can see some short-term hype from retailers amid expectations of an ETF. As BNB joins the queue of altcoins in the waiting line for ETFs.
Vieweing a much larger picture it seems that approval for these altcoins can also go on to show more regulatory clarity for larger crypto market. It can surely pave the way for altcoins as a safer asset class.
ETFs can also help onboard more retailers, traders as well as users to these blockchains by providing a regulated investment option.
