Grayscale's Big Move: What's Next for Binance Coin?

Bold Move by Grayscale

• Grayscale has applied for a Binance Coin (BNB) ETF.
• BNB's price has dropped 36% from its December high of $1,363.
• The ETF, if approved, will trade on Nasdaq under the ticker GBNB.
• It will hold actual BNB tokens to mirror its price.

Coinbase's Role and Staking Feature

• Coinbase will manage trading and custody, similar to other crypto ETFs.
• Large investors can create and redeem shares using BNB tokens directly.
• The fund will offer staking, a rare feature in crypto ETFs, allowing investors to earn yield.
• Management fees and seed capital details are still undisclosed.

Competition in the BNB ETF Race

• VanEck and REX Osprey have also filed for BNB ETFs.
• VanEck might have an edge due to its earlier filing.
• Competition reminds of Bitcoin and Ethereum ETF launches, where being first often captures the most inflows.

BNB's Price Action

• BNB is at the apex of a symmetrical triangle forming for over three months.
• The pattern usually breaks out big, but the direction is unclear.
• Currently trading just above the 200-day moving average at $883.7.
• Resistance zone around $900-915.

Potential Breakouts and Support Levels

• Break above $915 could target $950-1,000.
• A clear move above $1,050-1,100 signals a significant reversal.
• Losing $883.7 support could lead to a drop to $850-825.
• Breaking $800 could open the door to a more severe decline.