TLDR
- VanEck files Lido Staked ETH ETF, fueling surge in liquid staking demand
- Lido-backed Ethereum ETF by VanEck sparks token rally and market interest
- VanEck’s stETH ETF aims to unlock staking yields for institutional players
- Ethereum staking ETF filed by VanEck boosts Lido token and investor buzz
- Crypto ETF race heats up as VanEck enters with Lido-powered staking fund
VanEck has filed to register its Lido Staked Ethereum ETF in Delaware, intensifying the race in digital asset investment. This move aims to broaden access to staking-linked crypto products, especially Ethereum ETF offerings, which have gained traction. The announcement triggered a 7% price surge in Lido’s token, signaling increased market enthusiasm and participation.
Ethereum ETF Market Expands with Liquid Staking Strategy
VanEck’s latest filing reveals its strategic shift toward Ethereum ETF products, which include staking yields via Lido’s liquid staking model. Registered as a statutory trust, the fund utilizes CSC Delaware Trust Company as its agent, adhering to a standard fund structure. This approach enables broader exposure to Ethereum ETF options while aligning with Delaware’s favorable regulatory framework for funds.
By linking to Lido’s stETH, the ETF will provide exposure to yield-generating assets without technical hurdles. Ethereum stakers currently earn approximately 4% annually, and this ETF model could attract institutional investors. Although SEC approval is still required, the Delaware filing demonstrates an intent to lead this growing segment.
VanEck already manages spot Bitcoin and Ethereum ETFs, which have attracted steady inflows. The Lido staking strategy adds a new dimension, allowing passive rewards through a regulated investment vehicle. This aligns with market demand for compliant, yield-driven Ethereum ETF products.
Lido DAO Strengthens Position in Liquid Staking
Lido DAO’s staking protocol accounts for more than 30% of all ETH staked, making it the top liquid staking provider. The proposed Ethereum ETF from VanEck integrates Lido’s stETH, which offers liquidity while earning staking rewards. This enables continued asset mobility, which is key for active traders and institutions.
At the time of writing, Lido’s token was trading at $1.24, a 3.67% increase, and trading volume surging over 41% in the last 24 hours. Derivatives and open interest also rose significantly, signaling bullish momentum and increased engagement in staking-focused assets. These movements reflect broader interest in Ethereum ETF vehicles tied to liquid staking.
Lido DAO approved a treasury-backed buyback system in September, aiming to reduce the token supply by utilizing idle reserves. Up to 70% of new inflows will be allocated for buybacks during a test phase, which is expected by December. This supports token price growth and could complement ETF-driven demand increases.
Regulatory Environment and Competitive Landscape
Delaware remains a preferred destination for ETF filings due to its favorable trust structure and regulatory clarity. VanEck’s use of this pathway shows its readiness to navigate the SEC approval process. The Ethereum ETF space has become increasingly competitive, with firms like BlackRock and Fidelity eyeing similar opportunities.
In August, the SEC clarified that specific liquid staking models may be exempt from securities registration, boosting confidence in products like this. This guidance opens the door for Ethereum ETF filings that use yield-generating assets. Consequently, VanEck’s timing aligns with supportive regulatory trends.
Lido’s continued expansion into Layer-2 integrations and validator decentralization positions it for long-term growth. Restaking initiatives also support protocol flexibility, which appeals to Ethereum ETF issuers seeking robust and scalable staking partners. The VanEck filing underscores growing demand for regulated crypto yield products and reinforces Lido’s central role in the liquid staking ecosystem.
