Grayscale BNB ETF is a passive investment trust that holds BNB, the native digital asset of the BNB Smart Chain. The trust provides investors with exposure to BNB through shares traded on Nasdaq under the ticker GBNB, removing the requirement for investors to manage digital wallets or secure private keys. The trust aims to track the price of BNB, less fees, using the CoinDesk BNB Benchmark Rate. Grayscale Investments, a subsidiary of Digital Currency Group, acts as the sponsor and manages all operations. The business model relies on a sponsor’s fee, which is a daily-accruing percentage of the trust's NAV. This fee is paid in BNB, which gradually reduces the amount of BNB backing each share. In return, the sponsor covers all ordinary operating expenses, such as custody, administration, and audit fees. BitGo Bank & Trust provides custody for the trust's assets. To maintain share price alignment with the underlying BNB, authorized participants create and redeem shares in exchange for BNB or cash. While the trust does not currently earn income from its holdings, it may implement staking to generate rewards in the future if regulatory conditions are met. The trust’s performance is tied to the price of BNB and the adoption of the BNB Smart Chain, an ecosystem historically promoted by the Binance exchange.