VanEck, a leading asset manager with over $116 billion in assets under management as of April 2025, has taken significant steps toward launching the first U.S.-based staked Ethereum exchange-traded fund (ETF).
The proposed product, named the VanEck Lido Staked Ethereum ETF, would provide investors with regulated exposure to stETH—the liquid staking token issued by the Lido protocol—allowing them to earn Ethereum staking yields typically 3-5% annually without directly managing validators or dealing with lock-up periods.
The ETF remains in the regulatory review process with the U.S. Securities and Exchange Commission (SEC), with no approval granted yet. VanEck incorporated the VanEck Lido Staked Ethereum ETF as a statutory trust in Delaware, marking the initial procedural step toward SEC submission.
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This filing highlighted the fund’s intent to hold stETH directly, leveraging Lido’s dominance in Ethereum staking about 28-33% of all staked ETH, or roughly $38 billion in value locked. VanEck submitted a formal S-1 registration statement to the SEC, seeking approval to list the ETF on a major U.S. exchange.
The filing emphasizes stETH’s liquidity, audited smart contracts, and integration with custodians, positioning it as a bridge between DeFi and traditional finance. This positions VanEck ahead of competitors in the race for a staked ETH ETF, though broader SEC scrutiny on staking could delay timelines.
100% backed by stETH, which accrues staking rewards via rebasing automatic balance increases while remaining tradable on secondary markets. Track the performance of staked ETH, including yields from Ethereum’s Proof-of-Stake network, minus fees.
Fees is not yet finalized in filings, but expected to be competitive with VanEck’s existing spot ETH ETF (HODL), which charges 0.20%. Assets held by a regulated custodian likely VanEck’s partner, such as State Street, with no idle ETH buffers needed due to stETH’s redeemability.
Tax-efficient access to yields for institutions and retail investors, without on-chain complexities. If approved, the ETF could launch on platforms like NYSE Arca, potentially managing billions in inflows similar to spot ETH ETFs launched earlier in 2025.
As of December, the S-1 is under SEC review, with no public updates on approval since the October filing. The SEC’s hesitation stems from: Staking as a Security: Debates over whether staking rewards constitute income from securities.
Lido’s market share raises centralization flags, though its 650+ node operators and audited code mitigate this. Spot ETH ETFs were approved in mid-2025, but staking amendments have faced delays.
BlackRock filed for a separate staked ETH ETF a new fund distinct from its $11 billion ETHA trust, intensifying competition and signaling potential SEC openness to staking features. Industry experts, including Lido’s Chief Legal Officer Sam Kim, view the filing as a “growing recognition” of liquid staking’s role in Ethereum infrastructure.
Post-filing, Lido’s governance token (LDO) saw a 7% rally, reflecting market optimism. This ETF aligns with Ethereum’s evolution into a yield-bearing asset post-Merge, where over 28% of ETH supply is staked. Approval could drive institutional adoption, boosting ETH demand and Lido’s TVL.
In Europe, WisdomTree’s similar stETH ETP has already amassed $50 million AUM, offering a preview of U.S. potential. stETH may trade at a discount/premium to ETH during volatility.
Smart contract vulnerabilities: Reliance on Lido’s protocol and regulatory uncertainty is dependent on SEC rejection or delays could impact timelines. This product targets sophisticated investors; always review prospectuses for full risks.