BNB Also Knocks on ETF Door...Grayscale Submits Second Amended S-1 to SEC

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Grayscale has submitted its second amended S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for the launch of a spot BNB ETF. As the altcoin ETF competition expands beyond Bitcoin (BTC) and Ethereum (ETH), BNB has emerged as a key asset aiming to enter the regulated U.S. ETF market.

According to Coingape on May 16 (local time), Grayscale submitted its second amended S-1 registration statement to pursue the launch of a regulated investment product linked to BNB. This amendment follows a previous amendment application submitted during the SEC review process and aims for a structure that allows investors to gain exposure to BNB's price through traditional brokerage accounts without directly investing in BNB.

Unlike futures-based products, a spot BNB ETF is a product that directly holds the underlying cryptocurrency. Coingape reported that Grayscale is pushing for a BNB ETF after submitting an amended S-1 for the Hyperliquid (HYPE) ETF, accelerating the expansion of its altcoin-based ETF lineup.

However, regulatory uncertainties remain for BNB ETF approval. The SEC previously argued that BNB could be considered a security in a lawsuit against Binance and its founder Changpeng Zhao, which has been cited as a burden factor in the approval process for investment products linked to BNB. It is suggested that the amended registration statement may have supplemented details regarding custody, investor protection, and market surveillance.

Bloomberg ETF analyst James Seyffart assessed that the SEC has handled cryptocurrency ETFs cautiously, and BNB faces unique regulatory hurdles. He stated that while this amendment shows Grayscale's willingness to respond to SEC feedback, approval is not guaranteed.

If the BNB ETF is finally approved, the U.S. listed cryptocurrency ETF market could expand to a new altcoin product category, following Bitcoin, Ethereum, Solana (SOL), and XRP. Coingape explained that the product could offer institutional and retail investors regulated exposure to BNB through traditional brokerage accounts without needing a wallet or private keys. However, as the SEC is still reviewing Grayscale's application, BNB's price reaction has been limited.

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