SEC Filing Document

Company: VanEck BNB ETF
Ticker: 
CIK: 2066824
Filing Type: S-1
Document Type: S-1
Date Filed: 2025-05-05
Accession Number: 0002066824-25-000002
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2066824/000206682425000002/vaneckbnbetfs-1.htm

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or a portion of the Sponsor Fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. Custody of the Trust's Assets The Trust's BNB Custodian will keep custody of all of the Trust's BNB and will safeguard the private keys to the BNB associated with the Trust's BNB Account and Clearing Account. BNB private keys are stored in two different forms: "hot" storage, whereby the private keys are stored on secure, internet-connected devices (a "hot wallet"), and "cold" storage, where digital currency private keys are stored completely offline. The BNB Custodian maintains the private keys to the Trust's BNB in both the Trust's BNB Account and Clearing Account in a geographically distributed fashion across the continental United States. BNB Account

The Custody Agreement requires the BNB Custodian to hold the Trust's BNB in cold storage, unless required to facilitate withdrawals as a temporary measure. Other than in connection with creations and redemptions, where the associated BNB is first transferred to the Trust's Clearing Account (where they may be held in omnibus hot storage wallets, as described below) before being transferred to the Trust's BNB Account (in the case of a creation) or to the Liquidity Provider's [  ] account (in the case of a redemption), as well as in connection with transfers of BNB to pay the Sponsor Fee and to reimburse the Sponsor in BNB for payment of extraordinary expenses, which also are first transferred to the Trust's Clearing Account before being transferred to the Sponsor, the BNB Custodian will use segregated cold storage BNB addresses for the Trust's BNB Account. The addresses on the BNB Chain at which the Trust's BNB in the BNB Account are held by the BNB Custodian are separate from the BNB addresses that the BNB Custodian uses for its other customers and are directly verifiable via the BNB Chain. The BNB Custodian will at all times record and identify in its books and records that such BNB constitute the property of the Trust. The BNB Custodian will not withdraw the Trust's BNB from the Trust's BNB Account with the BNB Custodian, engage in Staking Activity, or loan, hypothecate, pledge or otherwise encumber the Trust's BNB, without the Trust's instruction, nor will the Sponsor or any other entity or service provider. The Trust will not lease or loan BNB held in the Trust's BNB Account with the BNB Custodian and will not give instructions to that effect, though it may engage in Staking Activities, subject to Staking Regulatory Approval.

The BNB Custodian has adopted the following security policies and practices with respect to digital assets held in cold storage: hardware security modules ("HSMs") are used to generate, store and manage cold storage private keys; multi-signature technology is used to provide both security against attacks and tolerance for losing access to a key or facility, eliminating single points of failure; all HSMs are stored offline in air- gapped environments within a diverse network of guarded, monitored and access-controlled facilities that are geographically distributed; multiple levels of physical security and monitoring controls are implemented to safeguard HSMs within storage facilities; and all fund transfers require the coordinated actions of multiple employees.

The Sponsor has evaluated the BNB Custodian's policies, procedures, and controls for safekeeping, exclusively possessing, and controlling the Trust's BNB holdings and believes these are designed consistent with accepted industry practices to protect against theft, loss, and unauthorized and accidental use of the private keys, though the Sponsor does not control the BNB Custodian's operations or implementation of such policies, procedures and controls and there can be no assurance that they will actually work as designed or prove to be successful in safeguarding the Trust's assets against all possible sources of theft, loss or damage.

The BNB Custodian currently maintains digital asset insurance consisting of a $[ ] million specie policy and a $[ ] million crime policy.

Although the BNB Custodian carries insurance, the BNB Custodian's insurance does not cover any loss in value of BNB and only covers losses caused by certain events such as fraud or theft and, in such covered events, it is unlikely the insurance would cover the full amount of any losses incurred by the Trust. The insurance maintained by the BNB Custodian is shared among all of the BNB Custodian's customers, is not specific to the Trust or to customers holding BNB with the BNB Custodian, and may not be available or sufficient to protect the Trust from all possible losses or sources of losses. The Trust is not a named beneficiary under the BNB Custodian's insurance policies, though the BNB Custodian has represented to the Sponsor that the insurance covers customer losses, including losses suffered by the Trust, arising from specified events, including fraud, theft, and cyber- security breaches.

Clearing Account

The Trust will use the Clearing Account in connection with the Clearing Services, which the Trust utilizes to facilitate purchases and sales of BNB in connection with creations and redemptions of Baskets as well as in connection with transfers of BNB out of the Trust to pay the Sponsor Fee and to reimburse the Sponsor in BNB for payment of extraordinary expenses. While the BNB Custodian maintains records of the Trust's BNB balance in its Clearing Account, the actual BNB relating to the Trust's Clearing Account is held in omnibus wallets by the BNB Custodian, meaning that BNB owned by multiple customers is held in the same wallet and at the same address on the BNB Chain. The Trust's Clearing Account balance therefore represents an omnibus claim on the BNB Custodian's BNB held in such wallets, and the Trust does not have an identifiable claim to specific BNB. The BNB Custodian holds the BNB across a combination of omnibus hot wallets and cold wallets. The Sponsor has no control over, and the BNB Custodian does not disclose to the Sponsor, the amount of BNB that the BNB Custodian holds in connection with the Trust's Clearing Account in omnibus hot wallets, as compared to omnibus cold wallets. The BNB Custodian could hold substantially all BNB connected to the Trust's Clearing Account in omnibus hot wallets, which permits more efficient transfers (thus facilitating the settlement of BNB purchase and sale transactions in connection with the Trust's creation and redemption processes) but makes the BNB more vulnerable to hacking than if it were held in cold storage in the BNB Account. The BNB Custodian has represented to the Sponsor that it does not treat the Trust's BNB in its Clearing Account as the BNB Custodian's own property and will not loan, hypothecate, pledge or otherwise encumber the Trust's BNB in its Clearing Account.

Fiat Account

The Trust expects to use the Fiat Account to facilitate the purchase and sale of BNB in connection with the cash creations and redemptions. In respect of the Fiat Account, the BNB Custodian holds the Trust's cash held in its account at the BNB Custodian in one or more Customer Omnibus Accounts. "Customer Omnibus Account" means, with respect to fiat currency held for customers of the BNB Custodian in fiat accounts (including the Trust's cash balance in its Fiat Account), omnibus bank accounts (each an "Omnibus Account") at depository institutions (each, a

"Bank"); money market accounts (each, a "Money Market Account") at a Bank or financial institution; and/or payment accounts (each, a "Payment Account") at a financial institution. The Trust intends to maintain any cash not held in the BNB Custodian's Fiat Account at the Cash Custodian in accordance with the Cash Custody Agreement.

The Trust generally does not intend to hold cash or cash equivalents except temporarily in connection with a cash creation or redemption transaction or to pay expenses. However, there may be situations where the Trust will unexpectedly hold cash on a temporary basis. For additional information, see "CUSTODY OF THE TRUST'S ASSETS" below.

Net Asset Value Determinations

As described in more detail below in "NET ASSET VALUE DETERMINATIONS," "NAV" means the total assets of the Trust which shall consist solely of BNB and cash, less total liabilities of the Trust.