VanEck Files for Staked Ethereum ETF as ETF Applications Surge The race to launch novel cryptocurrency exchange traded funds is intensifying, with VanEck submitting a proposal for a Lido Staked Ethereum ETF to United States regulators. This filing was part of a significant wave of new crypto ETF applications that arrived this week, a period also marked by the uncertainty of a potential federal government shutdown. The proposed VanEck Ethereum Strategy ETF is designed to track the performance of ether that is staked through the Lido protocol. Staking is the process of locking up cryptocurrency to help secure and operate a proof of stake blockchain network, in this case Ethereum, in return for rewards. By focusing on staked ether, the fund aims to provide investors with a way to gain exposure to Ethereum’s price movements while also potentially benefiting from the yield generated through staking rewards. The fund would not hold ether directly but would instead invest in ether staked through Lido stETH tokens. This filing from VanEck arrived alongside several other notable ETF applications, creating a flurry of activity sometimes referred to as ETFtober by industry observers. Among the other submissions was an application from 21Shares for a leveraged Hyperliquid ETF. A leveraged ETF uses financial derivatives to amplify the daily returns of its underlying asset, which in this case would be the Hyperliquid protocol. This indicates a growing sophistication in the crypto ETF space, moving beyond simple spot products to more complex financial instruments that cater to different investor risk appetites. The timing of these filings is notable, as they were submitted to the Securities and Exchange Commission while the threat of a U.S. government shutdown loomed. A shutdown would have significantly slowed the regulatory process, potentially delaying the review of these applications. This suggests that asset managers were eager to get their proposals on the SEC’s desk before any potential disruption, highlighting their commitment to expanding the crypto ETF market. This recent activity builds on the momentum from the successful launch of spot Bitcoin ETFs earlier this year, which were approved by the SEC and have seen substantial investor inflows. The approval of those funds opened the door for a new wave of products targeting other cryptocurrencies and strategies. An Ethereum ETF, particularly one that incorporates staking, has been highly anticipated by the market. However, the regulatory path for such products remains uncertain. The SEC has previously delayed decisions on several spot Ethereum ETF applications, and the inclusion of a staking component adds another layer of regulatory scrutiny. The emergence of these new filings signals that major financial institutions are continuing to push forward with plans to offer diverse crypto investment vehicles to the public. The focus is expanding from simple asset exposure to strategies that include yield generation and leveraged returns, reflecting a maturation of the digital asset class within traditional finance. The coming months will be critical as the SEC reviews these proposals and determines the next phase for cryptocurrency-based investment products in the United States.
