VanEck Withdraws Lido Staked Ethereum ETF Registration

VanEck Withdraws Landmark Lido Staked Ethereum ETF Filing

Asset manager VanEck has withdrawn its application for a U.S. exchange-traded fund (ETF) tied to Lido’s liquid staking token, stETH, marking the end of a pioneering proposal. The firm confirmed that no shares were ever issued and none will be.

A First for U.S. ETFs

The proposed ETF was notable as VanEck was the first firm to file for a U.S. ETF linked to Lido’s liquid staking token. The product’s lifecycle was brief. VanEck initially registered the fund as a Delaware statutory trust around October 2, 2025. This was followed by an S-1 registration statement submitted to the Securities and Exchange Commission (SEC) between October 16 and October 20, 2025.

Streamlining Staking Exposure

The ETF was designed to hold stETH, offering investors exposure to Ethereum staking rewards without requiring direct interaction with the blockchain. The structure aimed to provide daily liquidity and on-chain transparency, presented in a format familiar to institutional investors. This would have allowed entities like pension funds or wealth managers to earn staking yields through a standard brokerage account, eliminating the need for managing wallets, validators, or explaining private key security to compliance departments. The proposed structure was also marketed as tax-efficient.

At the time of the initial filing, Lido’s total value locked (TVL) was reported to be between $38 billion and $40 billion. Lido had also announced distributing over $2 billion in cumulative staking rewards since its inception.

The filing had garnered market attention, with Lido’s governance token, LDO, experiencing an approximate 7% rally following the announcement.

Unexplained Reversal

VanEck’s withdrawal notice confirmed the registration’s cancellation and the fund’s inability to issue shares. The firm did not provide a specific reason for the decision, nor did it explain the timing of the reversal.

The withdrawal comes amid a period of evolving regulatory scrutiny from the SEC regarding staking. The regulator has issued guidance that differentiates certain liquid staking activities from securities.

Continued Interest in Liquid Staking ETFs

Despite VanEck’s withdrawal, interest in liquid staking ETFs has not diminished. Development of similar products is reportedly ongoing in both the United States and Europe.

For LDO holders, the withdrawal highlights the speculative nature of the previous rally, which was largely driven by expectations of future institutional investment flows. With this specific ETF vehicle now off the table, those anticipated flows are no longer a certainty.

It is important to note that Lido’s underlying fundamentals, as indicated by its substantial TVL and cumulative rewards, were not contingent on the ETF’s approval. The protocol’s established position in the market meant it was not reliant on VanEck’s proposed product for its existence.