SEC Filing Document

Company: Grayscale BNB ETF
Ticker: GBNB
CIK: 2106762
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001193125-26-227224
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2106762/000119312526227224/bnb_s-1_amendment_2.htm

Chunk 45 of 90
Word Count: 1450
Character Count: 9087

Document Content:

Right or IR Virtual Currency that it may have had any right to receive at such time. The Trust has no right to receive any Incidental Right or IR Virtual Currency abandoned pursuant to either the Pre-Creation/Redemption Abandonment Notices or Affirmative Actions. Furthermore, the Custodian has no authority, pursuant to the Custodian Agreement or otherwise, to exercise, obtain or hold, as the case may be, any such abandoned Incidental Right or IR Virtual Currency on behalf of the Trust or to transfer any such abandoned Incidental Right or IR Virtual Currency to the Trust if the Trust terminates its custodial arrangement with the Custodian. In addition, the Sponsor has committed to cause the Trust not to take any Affirmative Action to acquire any Incidental Right or IR Virtual Currency and, therefore, irrevocably abandon any Incidental Right and IR Virtual Currency to which the Trust may become entitled in the future.

Because the Sponsor has committed to causing the Trust to irrevocably abandon all Incidental Rights and IR Virtual Currency to which the Trust otherwise would become entitled in the future, and causing the Trust not to take any Affirmative Actions, the Trust will not receive any direct or indirect consideration for the Incidental Rights or IR Virtual Currency and thus the value of the Shares will not reflect the value of the Incidental Rights or IR Virtual Currency. In addition, in the event the Sponsor seeks to change the Trust’s policy with respect to Incidental Rights or IR Virtual Currency, an application would need to be filed with the SEC by NASDAQ seeking approval to amend its listing rules to permit the Trust to distribute the Incidental Rights or IR Virtual Currency in kind to an agent of the shareholders for resale by such agent. However, there can be no assurance as to whether or when the Sponsor would make such a decision, or when NASDAQ will seek or obtain this approval, if at all. See “Risk Factors—Risks Related to the Trust and the Shares—Shareholders may not receive the benefits of any forks or airdrops.”

The Sponsor has controls in place to monitor for material hard forks or airdrops. The Sponsor will notify investors of any material change to its policy with respect to Incidental Rights and IR Virtual Currency by filing a current report on Form 8-K.

Secondary Market Trading

While the Trust’s investment objective is for the value of the Shares (based on BNB per Share) to reflect the value of BNB held by the Trust, including BNB earned as Staking Consideration (to the extent that the Staking Condition is satisfied and Staking is implemented), determined by reference to the Index Price, less the Trust’s expenses and other liabilities, the Shares may trade in the Secondary Market on NASDAQ (or on another Secondary Market in the future) at prices that are lower or higher than the NAV per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours and liquidity between NASDAQ and larger Digital Asset Trading Platforms. While the Shares are expected to be listed on NASDAQ and trade during NASDAQ’s Core Trading Session from 9:30 a.m. to 4:00 p.m., New York time, liquidity in the Digital Asset Markets may fluctuate depending upon the volume and availability of larger Digital Asset Trading Platforms. As a result, during periods in which Digital Asset Market liquidity is limited or a major Digital Asset Trading Platform is off-line, trading spreads, and the resulting premium or discount, on the Shares may widen.

[Potential Contribution Arrangement

The Sponsor is in discussions with [ ] (the “Potential Investor”), for the Potential Investor to acquire a number of Shares (the “Contribution Shares”) through an Authorized Participant, or its AP Designee, in exchange for [ ] BNB tokens (the “Contribution Tokens”), following the effectiveness of the registration statement of which this prospectus forms a part, and pursuant to such registration statement (collectively, the “Potential Contribution Arrangement”). The Contribution Shares would have no preference features associated with them, and would be economically the same as other Shares. However, there potentially will be separate economic arrangements in place between the Sponsor and the Potential Investor, as described below. However, because these discussions are not binding agreements or commitments to purchase, the Potential Investor could determine to purchase more, fewer or no Shares.

The Potential Investor is expected to agree to a 12-month lock-up period during which it will not sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, assign, pledge, redeem, or otherwise transfer or dispose of, directly or indirectly, any Contribution Shares, or enter into any hedging, swap or other agreement or transaction that transfers, in whole or in part, any of the economic consequences of ownership of the Contribution Shares, without the consent of the Sponsor (the “Lock-Up Period”). Furthermore, the Potential Investor is not an authorized participant and, accordingly, is not eligible to present a redemption basket to the Trust for redemption.

The Potential Investor is expected to be required to retain one-hundred percent (100%) of its original Contribution Shares during the Lock-Up Period, and no less than [ ]% of its original Contribution Shares following the expiration of the Lock-Up Period, in each case in order to remain eligible to receive any Payments from the Sponsor (collectively, the “Retention Requirements”).

As consideration for the Potential Investor’s Contribution Tokens and agreement to the lock-up, the Sponsor is expected to agree to make periodic payments to the Potential Investor, which are meant to approximate a rebate of the Sponsor’s Fee and the Sponsor’s Staking Fee actually earned and retained by the Sponsor for a given payment period, in each case as more specifically calculated pursuant to the terms of the Potential Contribution Arrangement (collectively, the “Payments”).]

Staking

At the commencement of this Offering, the Trust will not engage in Staking. The Trust Agreement provides that the Trust may engage in Staking, but only if (and, then, only to the extent that) the Staking Condition has been satisfied. Subject to the Staking Condition being satisfied and subject to compliance with any additional requirements that may arise in connection with satisfaction of the Staking Condition, in the future, the Sponsor may cause the Trust to engage in Staking as described herein. The Sponsor may in the future modify the form of Staking in which the Trust engages, but only if (and, then, only to the extent that) the Staking Condition has been satisfied with respect to any such modified form of Staking, and subject to compliance with any additional requirements that may arise in connection with satisfaction of the Staking Condition with respect thereto.

Staking Arrangements and Provider-Facilitated Staking Model

If the Staking Condition is satisfied, the Sponsor anticipates that the Trust would enter into the Staking Arrangements with the Custodian to stake the Trust’s BNB to one or more vetted Staking Providers operating validator software and associated hardware. The Sponsor anticipates that the Trust’s BNB will be staked exclusively by means of Provider-Facilitated Staking. The Sponsor expects that the Staking Arrangements will be set forth in an addendum to the Custodian Agreement between the Trust and the Custodian, a copy of which the Sponsor would file as an exhibit to a post-effective amendment to the registration statement of which this prospectus forms a part, in connection with the commencement of Staking pursuant to the proposed Staking Arrangements (and subject to the satisfaction of the Staking Condition with respect thereto). However, The Trust is currently prohibited from engaging in Staking, and there can be no assurance that the Trust will be permitted to engage in Staking in the future.

Under the Staking Arrangements, the Trust would be permitted to accept only Staking Consideration received in the form of BNB, and would not be permitted to accept any Other Staking Consideration in the form of other digital

assets. Neither the Trust, nor the Sponsor on behalf of the Trust, would have the ability under the Staking Arrangements to take advantage of any variations in the market to improve the investments of shareholders, including with respect to variations based on the value of BNB or the amount of Staking Consideration received as staking rewards. As a whole, the Staking Arrangements would permit the Trust to retain ownership of its BNB at all times for U.S. federal income tax purposes while simultaneously protecting and conserving the Trust Estate by mitigating the risk that another party or group could control a majority of the BNB Smart Chain and engage in transactions that could reduce the Trust Estate’s value.