BNB, the native token of Binance’s BNB Chain, is rapidly moving into the institutional spotlight. In two separate but closely timed developments, asset manager VanEck has filed with US regulators to launch the country’s first BNB-based exchange-traded fund, while Binance co-founder Changpeng “CZ” Zhao has recommended that Kyrgyzstan use BNB and Bitcoin as the foundation of its national cryptocurrency reserves.
VanEck Files First-Ever BNB ETF Application in the US as Crypto ETF Race Heats Up
According to a newly published S-1 registration statement, the proposed VanEck BNB ETF is structured to directly hold spot BNB tokens and may periodically stake a portion of its assets through trusted staking providers.
If approved, this fund would become the first ETF in the US to offer exposure to the BNB token — a digital asset with a market capitalization of approximately $84 billion and a staking yield near 2.5%, according to StakingRewards.com.
BNB, initially launched to support trading fee discounts on the Binance exchange, has since evolved into a key component of the BNB Chain ecosystem — a leading smart contract platform.
BNB Chain is among the most popular blockchain networks (Source: DeFILlama)
With over $6 billion in total value locked (TVL) as of early May, according to DeFiLlama, BNB Chain ranks among the top blockchain networks globally. It powers a wide range of decentralized applications, including DeFi platforms, games, and NFT marketplaces.
The VanEck proposal comes at a critical time for Binance and its ecosystem. Despite regulatory headwinds in the US and abroad, Binance continues to maintain its position as one of the largest global crypto exchanges. The potential listing of a BNB ETF in the United States could serve as a symbolic turning point in the token’s institutional legitimacy.
Riding the Bitcoin ETF Wave
VanEck’s filing also reflects a broader momentum shift in the crypto ETF landscape, particularly in the wake of the successful launch of spot Bitcoin ETFs last year. Since their approval in January 2024, spot Bitcoin ETFs have attracted more than $40 billion in cumulative inflows, according to data from Farside Investors.
Total inflows for US spot Bitcoin ETFs (Source: Farside Investors)
Speaking at the recent Token2049 conference in Dubai, Binance co-founder Changpeng “CZ” Zhao said he expects this ETF-driven enthusiasm to spread beyond Bitcoin. “This cycle so far has been the ETFs. And it’s almost all Bitcoin,” CZ said. “Ether hasn’t had as much success, but Bitcoin’s success will spill over to the others eventually.”
That “spillover” appears to be in full swing, with a growing list of asset managers seeking SEC approval for ETFs that track a wide variety of cryptocurrencies — including Ethereum, Solana, Avalanche, and now BNB.
VanEck’s BNB filing is just the latest in a series of moves by asset managers to gain a foothold in the altcoin ETF market. Over the past few months, VanEck has also submitted applications for ETFs based on Solana (SOL) and Avalanche (AVAX), both prominent Layer-1 blockchains. Meanwhile, other firms have taken bolder steps, floating ETF concepts tied to meme coins like Dogecoin (DOGE), capitalizing on the speculative energy in the crypto market during the 2025 bull run.
The SEC, under increased pressure to modernize its approach to digital assets, has formally acknowledged dozens of these filings since Jan. 20, when President Donald Trump returned to office. The Trump administration has so far signaled more openness toward crypto-related financial products, though the SEC's ultimate stance on altcoin-based ETFs remains uncertain.
Staking Could Add a Yield Component to ETFs
An interesting detail in the VanEck BNB ETF filing is its potential to stake a portion of its BNB holdings. Unlike traditional ETFs, crypto staking provides an opportunity for funds to generate yield while maintaining exposure to the underlying asset. This could enhance the fund’s appeal to yield-seeking investors in a high-inflation environment and further differentiate it from Bitcoin and Ethereum-based ETFs, which do not yet widely integrate staking.
As of May 5, BNB staking yields around 2.5% annually, providing a modest but consistent reward to long-term holders.
BNB price chart (Source: CoinMarketCap)
While the VanEck BNB ETF still faces a potentially lengthy regulatory review process, its filing marks a new chapter in the US crypto ETF narrative. Institutional interest is clearly growing beyond Bitcoin and Ethereum, and the door now appears open — at least slightly — for altcoin ETFs to follow the same path toward approval.
If the SEC gives the green light, the VanEck BNB ETF could act as a bellwether for other altcoin ETFs and help usher in a new wave of digital asset investment products designed specifically for mainstream markets.
CZ Proposes Bitcoin and BNB for Kyrgyzstan's National Crypto Reserve as Country Pushes Ahead with Web3 Ambitions
The proposal follows a string of developments that suggest Kyrgyzstan is positioning itself as a forward-thinking crypto hub in Central Asia. From launching a national crypto payments platform to piloting a central bank digital currency (CBDC), the Kyrgyz government appears to be embracing digital assets as part of a broader financial modernization strategy.
In a post shared on X, CZ confirmed he had advised Kyrgyzstan’s government to accumulate Bitcoin and BNB as part of its reserve strategy. “Start with the strongest,” CZ wrote, suggesting that Bitcoin’s status as the leading decentralized asset and BNB’s connection to one of the world’s largest blockchain networks make them ideal candidates for foundational crypto reserves.
Zhao’s influence in the crypto world cannot be understated. According to Forbes, he holds approximately 94 million BNB tokens — over 64% of the total circulating supply — valued at around $55 billion at current prices.
While he no longer leads Binance, CZ remains a powerful figure in shaping global crypto policy, and his endorsement could carry significant weight for emerging economies looking to integrate digital assets into their financial systems.
CZ’s proposal comes shortly after Binance signed a memorandum of understanding (MOU) with Kyrgyzstan’s National Investment Agency (NIA) to introduce Binance Pay — the exchange’s crypto payment platform — to the country. The partnership aims to allow both residents and visitors to conduct transactions using cryptocurrencies, and it marks a significant step toward real-world crypto adoption.
In addition to the payments initiative, Binance Academy is working alongside Kyrgyz institutions to provide blockchain education and help establish a skilled local workforce capable of supporting the country’s growing digital asset ecosystem.
Binance CEO Richard Teng also revealed in a Financial Times interview that the exchange has been advising various nations on the formation of crypto reserves. Kyrgyzstan appears to be among the first to act on that advice.
Government Embraces Web3 Future
The Kyrgyz government has shown a strong willingness to integrate digital assets into its national strategy. On April 17, President Sadyr Zhaparov signed into law a framework enabling the country’s central bank to pilot a central bank digital currency (CBDC). Under the new legislation, the digital version of the Kyrgyzstani som has been granted legal tender status, putting the country on a short list of nations ready to test government-backed digital currencies in the real economy.
The pilot program aims to improve financial inclusion, modernize monetary infrastructure, and reduce dependency on foreign intermediaries in domestic transactions.
Kyrgyzstan’s ambitions don’t end there. The country reportedly plans to launch a gold-backed stablecoin called the “Gold Dollar” (USDKG), pegged to the US dollar but backed by $500 million worth of gold reserves held by the Ministry of Finance. If confirmed, the stablecoin would act as a hybrid between traditional commodity backing and modern digital finance — a concept that could appeal to countries seeking to hedge against inflation and dollar volatility.
Regional and Global Implications
CZ’s advisory role in Kyrgyzstan is part of a growing trend of crypto leaders acting as informal diplomats for blockchain adoption. He previously disclosed that he had been officially and unofficially advising governments on regulatory and technological frameworks for the crypto sector. In April, similar news emerged from Pakistan, where Zhao was reportedly appointed to advise on digital asset policies.
If Kyrgyzstan follows through on building national crypto reserves and launching a gold-backed stablecoin, it could set a precedent for other nations in Central Asia and beyond. By combining decentralized digital assets like Bitcoin with sovereign-backed instruments such as stablecoins and CBDCs, the country may be laying the groundwork for a unique hybrid monetary system.
Changpeng Zhao’s proposal to use Bitcoin and BNB as the foundation of Kyrgyzstan’s national crypto reserve shows the rapid evolution of global finance. Backed by Binance’s ongoing educational and infrastructure initiatives in the country, Kyrgyzstan is emerging as a surprising but determined player in the race toward blockchain integration at the national level.
With a CBDC pilot underway, a potential gold-backed stablecoin in development, and direct collaboration with major industry leaders, Kyrgyzstan’s crypto experiment is one to watch closely in the months and years to come.
