VanEck Files S-1 for Lido Staked ETH ETF, Could Become First US ETF Referencing stETH Providing Regulated Ethereum Staking Exposure

• First US ETF to reference stETH: enabling regulated, issuer-backed access to Ethereum staking without direct ETH custody.

• Liquid staking mechanics support continuous exposure with smoother redemptions, reducing idle-ETH risk for ETF issuers.

• Staking economics and scale: staking rewards topped over two billion dollars since launch; total value locked near forty billion dollars.

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VanEck’s prospective ETF seeks regulated exposure to Ethereum staking via Lido’s stETH, offering daily liquidity and transparent on-chain backing for traditional investors. A landmark move toward institutional-grade staking infrastructure.

What is the VanEck Lido Staked ETH ETF?

The VanEck Lido Staked ETH ETF would hold stETH to provide investors with regulated exposure to Ethereum staking. It would deliver daily liquidity and on-chain backing, avoiding Ethereum withdrawal delays. If approved, it would become the first US ETF to reference stETH, bridging traditional finance with Ethereum’s staking economy.

How does liquid staking work within a regulated ETF framework?

Liquid staking tokens like stETH represent ETH deposited with a staking protocol and issued as staking receipts. They trade and redeem in secondary markets, delivering continuous exposure while enabling issuer efficiency in creating and redeeming shares. Regulators have observed that staking receipt tokens, while evidencing ownership of deposited assets, are not securities because the underlying assets are not securities, a view that supports regulated products referencing liquid staking tokens. This framework allows institutions to gain exposure without direct custody of staked ETH, provided operational and governance standards remain robust.

VanEck Lido Staked ETH ETF joins the wait

The ongoing US government shutdown has become the longest in the country’s history. This period is way longer than typical federal closures, creating major delays across key financial and regulatory functions. In fact, according to Kalshi data, there is a 53% chance that it could extend beyond 42 days.

To that end, the SEC has paused several ongoing processes. Between October 18 and 25, six XRP ETF proposals are awaiting review. VanEck has applied for a Lido-issued Ethereum ETF, while 21Shares filed for a 2x leveraged HYPE ETF. Several new altcoin-backed and leveraged ETF proposals also joined the wait last week.

The longer the shutdown continues, the longer these filings will remain pending. However, analysts expect that once the government reopens, the SEC will move quickly to process the backlog of ETF filings. This could create renewed activity in the crypto market and drive higher trading volumes for altcoins.

Meanwhile, Charles Schwab has reported a sharp rise in crypto engagement among its clients. Around 20% of Schwab clients now hold US listed crypto ETFs. Website traffic to its crypto portal also increased by 90% in the past year.

Global institutions expand staking

This month institutions have shown interest in staking. Today, Sygnum Bank Middle East has announced the launch of Sygnum Validators, a new institutional-grade staking service operated from Abu Dhabi Global Market (ADGM).

The initiative introduces regulated, non-custodial staking infrastructure for blockchain networks, allowing eligible token holders to delegate assets securely while maintaining full self-custody.

Additionally, the a16z Jito investment has announced a push to expand liquid staking and improve validator efficiency on Solana. Blockdaemon, a blockchain infrastructure firm has also announced its plans to expand its offerings with the launch of the Earn Stack.

Also, as recently reported by Cryptopolitan, Grayscale Investments introduced spot crypto exchange-traded funds in the US with a staking feature.

Frequently Asked Questions

What are the tax implications of a stETH-backed ETF?

Tax considerations hinge on how the fund structures distributions and gains. In broad terms, investors may face ordinary income or capital gains treatment on distributions, depending on the fund’s holdings and the timing of redemptions. Investors should consult tax professionals to understand jurisdictional rules and reporting requirements related to staking receipts.

Is the VanEck Lido Staked ETH ETF available now?

As of 2025, the filing is under regulatory review and has not yet resulted in a listed ETF. Market activity or trading would follow formal approval and listing by a regulated exchange, with official notices detailing the listing date and ticker upon completion of the review process.

Key Takeaways

• Takeaway 1: The ETF would be the first US vehicle to reference stETH, opening regulated staking exposure to a broader audience.
• Takeaway 2: Liquid staking tokens enable continuous exposure and efficient fund operation without requiring direct ETH withdrawals.
• Takeaway 3: Regulatory clarity around liquid staking tokens supports future ETF filings and institutional adoption of staking economies.

Conclusion

The proposed VanEck Lido Staked ETH ETF reflects a growing intersection between traditional finance and Ethereum’s staking economy. By leveraging stETH and a regulated framework, it aims to provide institutional-grade exposure with daily liquidity and on-chain transparency. Stakeholders should monitor regulatory developments and official listings, as a potential approval would mark a notable shift in how staking economics are integrated into conventional investment products. COINOTAG will continue to provide updates as the process unfolds.

Publication and update dates: 2025-10-20. Report by COINOTAG.