SEC Filing Document

Company: VanEck BNB ETF
Ticker: 
CIK: 2066824
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-03-16
Accession Number: 0001628280-26-017834
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2066824/000162828026017834/vaneckbnbs-1a3.htm

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MarketVectorTM BNB Benchmark Rate more volatile. As a result, BNB may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the MarketVectorTM BNB Benchmark Rate and could adversely affect the value of the Trust. The Trust is not actively managed and does not and will not have any strategy relating to the development of the BNB Chain, nor will the Trust seek to avoid or mitigate losses from declines in the BNB price. Furthermore, the impact of the expansion of the Trust's BNB holdings on the digital asset industry and the BNB Chain is uncertain. A decline in the popularity or acceptance of the BNB Chain, or the value of BNB, would harm the value of the Trust. Digital Asset Networks Face Significant Scaling Challenges And Efforts To Increase The Volume and Speed Of Transactions May Not Be Successful.

Many digital asset networks, including the BNB Chain, face significant scaling challenges due to the fact that public blockchains generally face a tradeoff between security and scalability. One means through which public blockchains achieve security is decentralization, meaning that no intermediary is responsible for securing and maintaining these systems. For example, a greater degree of decentralization generally means a given digital asset network is less susceptible to manipulation or capture. Achieving decentralization may mean that every single node on a given digital asset network is responsible for securing the system by processing every transaction and every single full node is responsible for maintaining a copy of the entire state of the network. However, this may involve tradeoffs from an efficiency perspective, and impose constraints on throughput. A digital asset network may be limited in the number of transactions it can process by the fact that all validators participate in validating in each block and the capabilities of each single fully participating node. Many developers are actively researching and testing scalability solutions for public blockchains that do not necessarily result in lower levels of security or decentralization, such as off-chain payment channels. Off-chain payment channels would allow parties to transact without requiring the full processing power of a blockchain.

As of March 4, 2026, the BNB Chain handled approximately 187 transactions per second. In an effort to increase the volume of transactions that can be processed on a given digital asset network, many digital assets are being upgraded with various features to increase the speed and throughput of digital asset transactions.

As corresponding increases in throughput lag behind growth in the use of digital asset networks, average fees and settlement times may increase considerably. Since August 2020, BNB transaction fees have stood at an average rate of 0.000658 BNB per transaction. Increased fees and decreased settlement speeds could preclude certain uses for BNB (e.g., micropayments) and could reduce demand for, and the price of, BNB, which could adversely impact the value of the Shares.

There is no guarantee that any of the mechanisms in place or being explored for increasing the scale of settlement of BNB Chain transactions will be effective, or how long these mechanisms will take to become effective, which could adversely impact the value of the Shares.

The rapid development of other competing scalability solutions, such as those which would rely on handling the bulk of computational work relating to transactions or smart contracts and DApps outside of the main BNB Chain and BNB Chain, has caused alternatives to sharding to emerge. "Layer 2" is a collective term for solutions which are designed to help increase throughput and reduce transaction fees by handling or validating transactions off the main BNB Chain (known as "Layer 1") and then attempting to take advantage of the perceived security and integrity advantages of the Layer 1 BNB Chain by uploading the transactions validated on the Layer 2 protocol back to the Layer 1 BNB Chain. The details of how this is done vary significantly between different Layer 2 technologies and implementations. For example, "rollups" perform transaction execution outside the Layer 1 BNB Chain and then post the data, typically in batches, back to the Layer 1 BNB Chain where consensus is reached. "Zero knowledge rollups" are generally designed to run the computation needed to validate the transactions off- chain, on the Layer 2 protocol, and submit a proof of validity of a batch of transactions (not the entire transactions themselves) that is recorded on the Layer 1 BNB Chain. By contrast, "optimistic rollups" assume transactions are valid by default and only run computation, via a fraud proof, in the event of a challenge. Other proposed Layer 2 scaling solutions include, among others, "state channels", which are designed to allow participants to run a large number of transactions on the Layer 2 side channel protocol and only submit two transactions to the main Layer 1 BNB Chain (the transaction opening the state channel, and the transaction closing the channel), "side chains", in which an entire Layer 2 blockchain network with similar capabilities to the existing Layer 1 BNB Chain runs in parallel with the existing Layer 1 BNB Chain and allows smart contracts and DApps to run on the Layer 2 side chain without burdening the main Layer 1 network, and others. To date, the BNB Chain community has not coalesced overwhelmingly around any particular Layer 2 solution, though this could change.

Many developers are actively researching and testing scalability solutions for public blockchains. However, there is no guarantee that any of the mechanisms in place or being explored for increasing speed and throughput of settlement of the BNB Chain transactions will be effective, which could cause the BNB Chain to not adequately

resolve scaling challenges and adversely impact the adoption of BNB and the BNB Chain and the value of the Shares. There is no guarantee that any potential scaling solution, whether a change to the Layer 1 BNB Chain like sharding or the introduction of a Layer 2 solution like rollups, state channels or side chains, will achieve widespread adoption. Alternatively, in theory, the widespread adoption of Layer 2 solutions could succeed in reducing congestion on the Layer 1 BNB Chain by moving transactions and computational work to the Layer 2 level and thereby reduce direct transactions on the Layer 1 BNB Chain, but by reducing transactions on the Layer 1 BNB Chain, could reduce demand for BNB on the Layer 1 BNB Chain, which could in theory negatively impact the price of BNB. It is possible that proposed changes to the Layer 1 BNB Chain could divide the community, potentially even causing a hard fork, or that the decentralized governance of the BNB Chain causes network participants to fail to coalesce overwhelmingly around any particular solution, causing the BNB Chain to suffer reduced adoption or causing nodes, users or validators to migrate to other blockchain networks. It is possible that proposed changes to the Layer 1 BNB Chain could divide the community, potentially even causing a hard fork, or that the decentralized governance of the BNB Chain causes network participants to fail to coalesce overwhelmingly around any particular solution, causing the BNB Chain to suffer reduced adoption or causing users or validators to migrate to other blockchain networks. It is also possible that scaling solutions could fail to work as intended, could suffer from centralization concerns, or could introduce bugs, coding defects or flaws, security risks, or other problems that could cause them to suffer operational disruptions. Alternatively, if a widely-used Layer 2 network were to fail, it could reduce demand for BNB because it would eliminate a source of demand for using BNB to record transactions from the Layer 2 onto the Layer 1 BNB Chain. Any of the foregoing could adversely affect the price of BNB or the value of the Shares of the Trust.

If The Digital Asset Award Or Transaction Fees For Recording Transactions On The BNB Chain Are Not Sufficiently High To Incentivize Validators, Or If Certain Jurisdictions Continue To Limit Or Otherwise Regulate Validating Activities, Validators May Cease Expanding Validating Power Or Demand High Transaction Fees, Which Could Negatively Impact The Value Of BNB And The Value Of The Shares.

If the digital asset awards for validating blocks or the transaction fees for recording transactions on the BNB Chain are not sufficiently high to incentivize validators, or if certain jurisdictions continue to limit or otherwise regulate validating activities, validators may cease expending validating power to validate blocks and confirmations of transactions on the BNB Chain could be slowed. For example, the realization of one or more of the following risks could materially adversely affect the value of the Shares: