SEC Filing Document

Company: VanEck BNB ETF
Ticker: 
CIK: 2066824
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2025-10-30
Accession Number: 0001628280-25-047581
Exchange: 
SIC Code: 6221
SIC Description: Commodity Contracts Brokers & Dealers
URL: https://www.sec.gov/Archives/edgar/data/2066824/000162828025047581/vaneckbnbs-1a1.htm

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fourth, a Change of Control (as defined in the Custody Agreement) of the Defaulting Party, or an event, change or development that causes or is likely to cause a Material Adverse Effect (as defined in the Custody Agreement) on the Defaulting Party, or in the ability of the Defaulting Party to fulfill its responsibilities under the Custody Agreement, occurs; fifth, with respect to the Trust's right to terminate, the BNB Chain undergoes a fork and becomes a forked network, and the Trust disagrees with the BNB Custodian's choice of which forked network to support; or with respect to the Trust's right to terminate, applicable laws and regulations or any change therein or in the interpretation or administration thereof that may have a Material Adverse Effect (as defined in the Custody Agreement) on the Trust or the rights of the Trust with respect to any services covered by the Custody Agreement.

The BNB Custodian has the right to immediately (i) take actions the BNB Custodian determines appropriate to comply with applicable law and regulations and in accordance with its Bank Secrecy Act and Anti-Money Laundering compliance program ("BSA/AML Program"), (ii) suspend the Trust's BNB Account or Fiat Account, (iii) freeze/lock the funds and assets in all such accounts, and (iv) suspend the Trust's access to the BNB Custodian's platform or its account there (collectively, an "account suspension"), if: (A) the BNB Custodian is required to do so by a regulatory authority, court order, facially valid subpoena, or binding order of a governmental authority, (B) the BNB Custodian reasonably and in good faith believes the Trust has violated applicable laws and regulations in connection with the Trust's BNB Account or Fiat Account, or the BNB Custodian is required to do so under the BNB Custodian's BSA/AML Program, (C) the BNB Custodian believes someone is attempting to gain unauthorized access to the account, or (D) the BNB Custodian believes there is unusual activity in the account. Except as set forth above, the BNB Custodian shall not suspend the Trust's access to the BNB Account or the Fiat Account, and any suspension of the Trust's access to such accounts shall constitute a breach of the Custody Agreement. In the case of an account suspension due to (C) or (D) of this paragraph, the BNB Custodian shall restore the Trust's normal access to the BNB Account or Fiat Account as promptly as reasonably possible without putting the BNB and fiat currency in such accounts at risk. In the case of an account suspension due to (A) or (B) of this paragraph, the BNB Custodian shall permit the Trust to withdraw the Trust's BNB and fiat currencies from BNB Account or Fiat Account as soon as permitted by applicable laws and regulations or the applicable court order, subpoena, or regulatory or governmental authority, and for ninety (90) days thereafter.

The Sponsor may, in its sole discretion, add or terminate other BNB Custodians. The Sponsor may, in its sole discretion, change the custodian for the Trust's BNB holdings, but it will have no obligation to do so or to seek any particular terms for the Trust from other such custodians. To the extent that the Sponsor adds or terminates other BNB Custodians, or changes the custodian for the Trust's BNB holdings, notification will be made to Shareholders via a prospectus supplement and/or a current report filed with the SEC.

In addition to the BNB custodial services described herein, the BNB Custodian will also provide the Trust with clearing and settlement services for BNB purchase and sale transactions between the Trust and its trading partners. These services are detailed within the clearing agreement between the Trust and the BNB Custodian (the "Clearing Agreement").

The BNB Custodian's Role in the Clearing Agreement

The BNB Custodian's clearing services ("[     ]") has been in operation as a settlement platform to clear off-exchange trades, allowing the submission, acceptance, funding, and settlement of purchase and sale transactions

with respect to BNB that the Trust arranges and negotiates with another party that is also a customer of the BNB Custodian ("Counterparty") without the involvement of the BNB Custodian (such transactions, "Clearing Transactions"). The Trust engages in Clearing Transactions with Liquidity Providers (as defined in "CREATION AND REDEMPTION OF SHARES—Creation Procedures") to source BNB in connection with purchase orders made in cash by Authorized Participants, or to sell BNB for cash to fill redemption orders in cash made by Authorized Participants. The Trust engages in Clearing Transactions with Authorized Participants or their designees in connection with in-kind transfers of BNB in connection with in-kind subscription and redemption processes. [     ] does not charge additional fees as the cost of Clearing Transactions is included in the BNB Custodian's custody fees. As further described below under "CREATION AND REDEMPTION OF SHARES", the Trust's Authorized Participant Agreement provides that transaction costs and slippage related to Basket creation and redemption are the responsibility of the Authorized Participant.

[     ] has adopted the [     ] BSA/AML Program for its digital asset trading platform and custody service in an effort to maintain the highest possible compliance with applicable laws and regulations relating to anti-money laundering in the U.S. and other countries where it conducts business. This program includes robust internal policies, procedures and controls that combat any attempted use of [     ] for illegal or illicit purposes, including, among others, a customer identification program, annual training of all employees and officers in anti-money laundering regulation, filing of Suspicious Activity Reports and Currency Transaction Reports with the U.S. Financial Crimes Enforcement Network and annual internal and independent audits of the [     ] BSA/AML Program.

[     ] has represented to the Sponsor that it has policies in place to mitigate conflicts of interest in connection with the Clearing Services, including a conflicts of interest policy and a trading policy for employees. The Trust's Clearing Account is subject to [     ]'s User Agreement, which provides that BNB custodied in the Trust's Clearing Account are not treated as general assets of [     ]. [     ] has represented to the Sponsor that [     ] treats the BNB credited to the Trust's Clearing Account as belonging to the Trust and does not pledge, hypothecate, or otherwise encumber the Trust's BNB in its Clearing Account except pursuant to instructions from the Trust, which the Trust has not granted and will not grant.

Each Clearing Transaction has one party that will act as buyer owing an amount of fiat currency (such party, the "Buyer" and such amount, the "Fiat Currency Amount") and a party that will act as a seller owing an amount of BNB (such party, the "Seller" and such amount, the "Digital Asset Amount"). The Trust will act as Buyer in connection with a purchase order or Seller in connection with a redemption order, while the Liquidity Provider (or Authorized Participant or their designee) – which must be a customer and have established accounts at the BNB Custodian – will be the Seller in connection with a purchase order or the Buyer in connection with a redemption order.

For each Clearing Transaction, the Trust or the Counterparty is responsible for submitting a request (such party, the "Submitting Party" and such request a "Clearing Request") to settle a transaction through [     ] in the form and manner, and otherwise in accordance with the instructions, technical specifications and other information, that the BNB Custodian may require. For each Clearing Transaction and Clearing Request, the Submitting Party must, at a minimum, (i) identify the account at the BNB Custodian ("[     ]") of the other party to the Clearing Transaction (such party, the "Confirming Party"), (ii) the Buyer and the applicable Fiat Currency Amount for the Clearing Transaction, (iii) the Seller and the applicable Digital Asset Amount for the Clearing Transaction, and (iv) the time period by when the Clearing Request will expire if not completed ("Expiration Time").

Once the Submitting Party successfully submits a Clearing Request, the BNB Custodian shall notify the Confirming Party of the Clearing Request and the relevant information in such Clearing Request. The Trust is responsible for funding its Fiat Account or BNB Account, as applicable, with the Fiat Currency Amount and the Digital Asset Amount, as applicable based on the Clearing Request, in each case prior to the Expiration Time. The Counterparty must fund its applicable account at the BNB Custodian as well.

If, prior to the Expiration Time, both the Trust and the Counterparty have funded their applicable account at the BNB Custodian with their respective obligation of the Fiat Currency Amount and the Digital Asset Amount, the BNB Custodian shall (i) transfer the Fiat Currency Amount from the Buyer's [     ] Account to the Seller's [     ] Account and (ii) transfer the Digital Asset Amount from the Seller's [     ] Account to the Buyer's [     ] Account. If