VanEck bets on BNB’s real-world usage to differentiate its ETF offering from the altcoin pack

VanEck just became the first asset manager to bring a spot BNB ETF to the US market. The fund, ticker VBNB, started trading on Nasdaq on May 28, and it’s making a pitch that most crypto ETFs haven’t bothered with: that the underlying token actually does things beyond sitting in a wallet and appreciating.

What VBNB actually looks like

The ETF provides direct exposure to BNB tokens held in cold storage by Anchorage Digital Bank, a qualified custodian. It launched with approximately $2 million in assets under management and traded in a range between $21 and $23 out of the gate.

The expense ratio sits at 0.39%. VanEck originally filed the S-1 for VBNB on May 2, 2025, and the document went through multiple amendments before regulators gave it the green light over a year later.

One notable absence: staking. VanEck excluded staking from the initial structure due to regulatory sensitivities, though the firm has highlighted staking potential in supplementary materials, leaving the door open for a future amendment.

The utility argument

BNB Chain processes over 14 million transactions daily and supports more than 2.5 million daily active users. The ecosystem also hosts over $16 billion in stablecoins and $3.6 billion in tokenized real-world assets. VanEck is also emphasizing BNB Chain’s role in payments, gaming, and DeFi activity.

The competitive landscape is heating up

VanEck may have first-mover advantage, but it won’t be alone for long. Grayscale is pursuing its own BNB ETF amendments, signaling that the largest crypto-native asset manager sees the same opportunity.

VanEck already operates the HODL Bitcoin ETF, giving it an established reputation in digital asset management and an existing distribution network of advisors and institutional clients.

Early performance data offers a reality check. VBNB showed an approximate decline of 12.52% by early June.

What this means for investors

For retail investors, VBNB removes the friction of buying BNB directly, allowing purchase through existing brokerage accounts, including retirement accounts and advisory-managed portfolios that can’t easily hold spot crypto.

For institutional investors, the $2 million AUM at launch is tiny, and institutions generally avoid products with low liquidity because they can move the price just by entering or exiting a position.