VanEck Submits Application for the First U.S. ETF Supported by Lido’s stETH
On October 20, 2025, VanEck filed an S-1 registration document with the U.S. Securities and Exchange Commission for a new offering named the VanEck Lido Staked Ethereum ETF. This would be the inaugural exchange-traded fund in the United States that allows investors to gain exposure to stETH, the liquid locking tokens crypto token provided by Lido Finance. This token signifies ether that has been staked via the Lido platform.
The ETF aims to replicate the economic mechanics of ETH earning yield. It would provide investors with the opportunity to earn locking tokens rewards while maintaining daily liquidity, all without the complications of managing node nodes.
Understanding the Filing’s Mechanics
VanEck’s proposal details a fund intended to track the price of stETH and also capture its locking tokens returns. As stated in the filing, Lido’s platform has already generated over 2 billion dollars in staking rewards and manages nearly 40 billion dollars in total value locked.
VanEck has filed an S-1 for the VanEck Lido Staked Ethereum ETF, a proposed fund holding stETH — ETH staked via the Lido network.
A milestone moment for liquid locking tokens and recognition of stETH’s role in Ethereum’s institutional evolution.@vaneck_us https://t.co/9P8OsS1Vtm pic.twitter.com/ofQFo2DRoi
— Lido (@LidoFinance) October 20, 2025
The aim is to provide institutions with a simplified method to access ETH locking tokens without the necessity of maintaining technical infrastructure or facing delays in withdrawals. Given that stETH is already actively traded, audited, and backed by significant custodians and exchanges, it is a logical choice for an ETF structure.
SEC’s Recent Stance Facilitates This Move
This filing is not a spontaneous occurrence. It follows a recent clarification from the SEC’s Division of Corporation Finance. Earlier this year, the agency indicated that certain liquid earning yield activities may not be classified as securities if they conform to specific administrative criteria.
This created a regulatory avenue for exchange-traded products that reference tokens like stETH, provided those tokens are not classified as securities. In its own statement, the Lido Ecosystem Foundation remarked that the filing demonstrates that liquid earning yield is beginning to be recognized as a fundamental component of Ethereum’s infrastructure.
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Implications for the Crypto Space
If this fund receives approval, it would represent the First opportunity for U.S. investors to gain access to ETH earning yield rewards via a regulated, publicly traded vehicle. This could attract institutions that have previously refrained due to technical or regulation limitations.
This is not merely about a single ETF. It could pave the way for additional regulated products centered around earning yield derivatives or liquid locking tokens tokens. VanEck’s initiative could serve as a bridge between the rapidly evolving decentralized finance landscape and more conventional investment avenues.
Potential Challenges Ahead
However, this filing still awaits the SEC’s endorsement, and various factors could cause delays. The fund must align with the regulator’s standards regarding custody, pricing transparency, redemptions, and investor security.
Moreover, there are specific risks associated with earning yield, such as network node downtime, slashing penalties, or alterations to the ETH platform. VanEck will need to address all these concerns comprehensively. They must also ensure the fund can accurately track stETH pricing and rewards, while enabling redemptions without restrictions.
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Attention on Upcoming Developments
In the weeks ahead, all eyes will be on how the SEC reacts and whether VanEck elaborates further on the fund’s structure. Other asset managers will also be scrutinizing the situation. If this filing gains traction, it could lead to a surge of ETF proposals concentrated on liquid locking tokens.
While it’s still in the preliminary stages, this filing could signify that Ethereum earning yield is beginning to be integrated into mainstream finance. Investors who previously viewed earning yield as overly complicated might soon find themselves able to participate with an easy click.
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Key Takeaways
- VanEck has submitted an application for the first U.S. ETF related to Lido’s stETH, aiming to provide Ethereum earning yield access through conventional finance.
- The proposed ETF would allow investors to earn earning yield rewards while retaining the flexibility of daily liquidity.
- The filing is a result of a recent SEC clarification that allows particular liquid staking tokens to potentially bypass being categorized as securities.
- Should it gain approval, this could facilitate access to ETH staking rewards for institutions without necessitating network node infrastructure.
- SEC approval is still required, and VanEck needs to clearly outline staking risks, redemption processes, and pricing transparency.
The post VanEck Files for First U.S. ETF Backed by Lido’s stETH appeared first on 99Bitcoins.
