Global asset manager VanEck has officially filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) for its proposed Lido Staked ETH (stETH) Exchange-Traded Fund (ETF). The move represents a historic attempt to bridge decentralized finance (DeFi) staking with traditional investment markets, signaling the next frontier in Ethereum-based financial products.
VanEck’s Lido Staked ETH ETF: A Game-Changer for Crypto-Linked Funds
The VanEck Lido Staked ETH ETF filing aims to offer U.S. investors direct exposure to Ethereum’s staking yield through a regulated financial instrument, without requiring direct participation in the DeFi ecosystem.
This would be the first U.S.-based ETF tied directly to Lido’s staked ETH (stETH), a token that represents Ethereum locked in staking contracts to secure the network and earn passive income.
If approved, the ETF will allow both retail and institutional investors to gain staking rewards, estimated between 3.5% and 4% annually, through traditional brokerage platforms. This innovative approach could open the floodgates for mainstream adoption of blockchain-based yield strategies in the regulated financial sector.
How the Lido Staked ETH ETF Works
According to the S-1 filing, the VanEck stETH ETF will track the performance of staked ETH held through Lido Finance, the largest liquid staking protocol in the DeFi ecosystem.
Lido allows users to stake ETH and receive stETH tokens in return, representing their stake plus accrued rewards. The proposed ETF will hold stETH tokens in secure custody while ensuring daily net asset value (NAV) reporting and transparent yield calculations for investors.
The product’s design offers the benefits of Ethereum staking rewards while removing complexities related to wallet management, validator operation, and slashing risks.
By tokenizing yield from decentralized networks, VanEck’s ETF could become the first bridge connecting DeFi-native yield mechanics with regulated asset management structures.
DeFi Meets Wall Street: A New Era of Tokenized Finance
This filing marks a significant step in institutional DeFi integration, as VanEck becomes the first major asset manager to formally propose an ETF tied to a DeFi protocol’s yield-bearing token.
Market analysts see this as part of a broader trend toward tokenized asset management, where blockchain-based rewards are translated into traditional financial products.
The VanEck stETH ETF could pave the way for future tokenized ETFs tied to other staking assets, such as Solana, Avalanche, or Cardano, expanding the bridge between on-chain finance and regulated capital markets.
This development follows the success of spot Bitcoin ETFs, which saw billions in inflows in 2024 and 2025. Analysts suggest Ethereum’s transition to a fully proof-of-stake model has created a natural opportunity for yield-based ETFs, appealing to investors seeking both capital appreciation and passive income.
SEC’s Stance and Market Expectations
While the SEC has approved spot Bitcoin ETFs, it remains cautious toward staking-related products, citing regulatory and custodial complexities.
However, the timing of VanEck’s filing aligns with a more open regulatory climate under ongoing discussions around digital asset legislation in the U.S. Congress.
Should the SEC approve the ETF, it could set a precedent for future DeFi-integrated investment vehicles, signaling growing acceptance of staking-based yield in traditional finance.
VanEck has a strong track record with digital asset products, including the VanEck Bitcoin Trust and Ethereum ETF proposals, making it one of the few asset managers with both regulatory experience and crypto-native understanding.
Market Reactions and Implications
Following the news, Ethereum (ETH) and Lido DAO (LDO) tokens saw a sharp uptick in trading volume, reflecting strong investor enthusiasm for DeFi-tradFi integration.
If approved, analysts expect the VanEck stETH ETF to attract billions in inflows from institutional investors seeking regulated staking exposure, while providing long-term liquidity support for Ethereum’s ecosystem.
This could also catalyze greater recognition of DeFi’s role in mainstream finance, bridging a critical gap between blockchain innovation and Wall Street participation.
FAQs
Q1: What is the VanEck Lido Staked ETH ETF?
It’s a proposed exchange-traded fund that tracks Lido’s staked Ethereum (stETH), offering staking yield exposure within a regulated market.
Q2: How does it differ from a regular Ethereum ETF?
Unlike spot ETH ETFs, the VanEck stETH ETF includes staking rewards, providing investors with passive yield in addition to ETH price appreciation.
Q3: Why is Lido Finance central to this ETF?
Lido Finance is the largest Ethereum liquid staking protocol, securing over $30 billion in staked ETH, making it the ideal foundation for this ETF.
Q4: When could the ETF be approved?
Approval depends on SEC review timelines, but market experts expect potential decisions in early to mid-2026.
Q5: What impact could this have on DeFi and traditional finance?
It could establish DeFi staking as a mainstream financial instrument, blending on-chain yield generation with regulated ETF structures.