VanEck Files S1 Application for Lido Staked ETH ETF — A New Milestone for ETH Funds
VanEck, one of the largegest asset managers in the cryptocurrency investment world, has officially filed an S-1 registration statement with the U.S. Securities and platform Commission (SEC) for a platform-Traded Fund (ETF).
This pioneering action is a large step forward for ETH-based financial products since it wants to include on-chain staking yields in regulated investment vehicles.
A large Step Forward For ETH Exposure
The filing aims to give investors access to Lido’s staked ETH (stETH), aderivative that stands for ETH that is locked on the network to protect transactions and collect staking incentives.
The proposed ETF would not only monitor the price of ETH like other current ETH ETFs do, but it would also include staking yield earned through the Lido protocol. This would combine the prospect for passive income with the ease of use of standard financial products.
There is a rising demand from institutions for new ways to invest in blockchain-based assets without having to manage staking infrastructure directly. Lido Finance is the most popular liquid staking platform and has more than 30% of all staked ETH. This makes its derivative token stETH a key part of liquidity and yield schemes.
Connecting Traditional Finance and On-Chain Yield
If it gets the green light, VanEck’s Lido Staked ETH ETF might change the way traditional finance and work together.
The fund’s goal is to make ETH staking easier by providing a regulated, custodial ETF structure that automatically adds staking rewards to its value. This will assist with things like managing Block confirmer nodes and withdrawal periods.
This framework is very similar to what has happened in Europe, where regulated Ether staking instruments are already available under local securities rules. But getting clearance from the U.S. would set a large regulatory precedent, which might lead to other staking-based ETFs linked to other networks like or Avalanche (AVAX).
Investors are Competing in Staking in the ETF Market
action comes later than a lot of other large issuers, such BlackRock, Fidelity, Bitwise, and Grayscale, filed for ETFs that look into staking answers for ETH and Solana. Cointelegraph recently reported that the SEC is looking at more than a dozen applications for crypto ETFs, several of which include staking features as investors move toward assets that generate income.
Hunter Horsley, the CEO of , said that ETH’s lengthier unstaking periods compared to Solana could be a difficulty for fund issuers. This makes liquid staking derivatives like Lido’s stETH very significant.
VanEck can make sure there is enough liquidity and speedier redemption times by using Lido’s protocol, all while still getting staking incentives.
