VanEck Proposes Lido Staked ETH ETF to SEC

VanEck has filed an S-1 application with the U.S. SEC for a “VanEck Lido Staked ETH ETF,” targeting Ethereum staking through Lido’s stETH.

This move highlights a growing acceptance of liquid staking in crypto infrastructure, potentially facilitating institutional participation in Ethereum staking with regulatory compliance and tax efficiency.

VanEck’s SEC Filing Highlights Ethereum Staking Expansion

VanEck recently submitted an S-1 registration for a new ETF with the U.S. SEC after aiming to provide institutional investors access to Ethereum staking rewards using Lido’s stETH. VanEck, known for pioneering crypto ETF products, continues its innovative streak with this application. The filing represents a pivotal point for liquid staking in the Ethereum ecosystem, aligning with existing institutional standards. Lido Protocol, commanding about 60% of the staked ETH market, would benefit from this ETF’s structured approach to regulated Ethereum staking.

Market reactions to the filing were swift. Ethereum’s stETH, central to this ETF, recorded a price dip while sparking positive discourse online. Kean Gilbert of Lido Ecosystem Foundation affirmed the application reveals a “recognition of liquid staking as a core component of Ethereum infrastructure,” emphasizing the potential for institutional-standard coexistence within a decentralized framework.

“The filing signals growing recognition that liquid staking is an essential part of Ethereum’s infrastructure. Lido protocol’s stETH has shown that decentralization and institutional standards can coexist, providing a foundation the broader market can build on.” — Kean Gilbert, Head of Institutional Relations, Lido Ecosystem Foundation

Ethereum and Institutional Interest: Market Data and Predictions

Did you know? The potential ETF approval could mark a first for a liquid staking integration within a U.S.-regulated fund, setting a precedent for future decentralized finance offerings.

Recent data from CoinMarketCap indicates Ethereum (ETH), valued at $4,035.88, maintains a market cap of $487.12 billion, capturing 12.96% of market dominance. Over the last 90 days, ETH has seen an 8.83% increase. Its 24-hour trading volume reached $36.30 billion, showing a 42.77% rise.

Research from Coincu suggests that the ETF’s approval might prompt increased liquidity in Ethereum markets, attracting more institutional players drawn to security and compliance benefits. The market could experience shifts in staking demands, potentially impacting pricing and yield-related outcomes linked to stETH investments.