VanEck seeks approval for first ETF using Lido’s stETH collateral
-ie3yh3cQ.png "VanEck seeks approval for first ETF using Lido’s stETH collateral")
VanEck has submitted an application to launch a U.S.-listed ETF backed by Lido’s liquid staking token stETH, potentially opening a path for institutional investors to earn ETH staking yield through traditional financial rails.
The filing proposes a spot ETF that holds stETH – Ethereum liquid staking tokens issued by Lido Finance – as its underlying asset. If approved, the product would allow institutional and retail investors in traditional markets to gain exposure to Ethereum staking rewards without directly interacting with on-chain protocols.
VanEck, already one of the early entrants in the spot Ethereum ETF race, appears to be expanding its strategy beyond price exposure into yield-bearing derivatives, tapping into the narrative that Ethereum is evolving into a yield-generating internet bond.
Lido’s stETH is the largest liquid staking token in the market, accounting for more than 27% of all staked ETH and over 75% of the liquid staking derivative (LSD) sector. It represents ETH staked on the Ethereum network, accruing block issuance and priority fee rewards daily while remaining transferrable and composable within DeFi.
VanEck, already one of the early entrants in the spot Ethereum ETF race, appears to be expanding its strategy beyond price exposure into yield-bearing derivatives, tapping into the narrative that Ethereum is evolving into a yield-generating internet bond.
Lido’s stETH is the largest liquid staking token in the market, accounting for more than 27% of all staked ETH and over 75% of the liquid staking derivative (LSD) sector. It represents ETH staked on the Ethereum network, accruing block issuance and priority fee rewards daily while remaining transferrable and composable within DeFi.
By selecting stETH rather than native ETH, VanEck aims to offer investors not only price exposure but also embedded staking returns. This could differentiate the product from existing spot ETH ETFs, which track ETH but currently do not auto-compound staking rewards due to regulatory concerns around whether staking constitutes an investment contract.
The SEC has yet to formally approve staking-based ETFs, though several issuers have explored “earn-lite” structures. The stETH ETF filing may test whether securitized access to liquid staking can be positioned as passive exposure rather than as a direct participation in Ethereum’s validating process.
Ethereum staking currently yields around 3%-4% annually from validator rewards, with additional returns available through protocol-level MEV. Institutional research increasingly views ETH staking as a yield-bearing asset, with multiple funds drawing parallels between ETH and digital real-yield treasuries.
If greenlit, VanEck’s product could become the first compliant gateway for traditional funds, family offices, and RIAs seeking staking-linked returns without custody, validator operation, or on-chain liquidity risk.
The filing places VanEck ahead of BlackRock, Fidelity, Franklin Templeton, and other issuers who may explore liquid staking ETF products should regulatory approval become feasible. Similar strategies may soon extend to other tokens with strong staking markets, including Solana’s jitoSOL and Polygon’s stMATIC.
Lido DAO has not yet commented on whether the ETF will include any revenue-sharing or governance participation from staking flows. However, the listing could reinforce stETH’s position as the default institutional gateway to liquid staking.
The SEC has yet to formally approve staking-based ETFs, though several issuers have explored “earn-lite” structures. The stETH ETF filing may test whether securitized access to liquid staking can be positioned as passive exposure rather than as a direct participation in Ethereum’s validating process.
Ethereum staking currently yields around 3%-4% annually from validator rewards, with additional returns available through protocol-level MEV. Institutional research increasingly views ETH staking as a yield-bearing asset, with multiple funds drawing parallels between ETH and digital real-yield treasuries.
If greenlit, VanEck’s product could become the first compliant gateway for traditional funds, family offices, and RIAs seeking staking-linked returns without custody, validator operation, or on-chain liquidity risk.
The filing places VanEck ahead of BlackRock, Fidelity, Franklin Templeton, and other issuers who may explore liquid staking ETF products should regulatory approval become feasible. Similar strategies may soon extend to other tokens with strong staking markets, including Solana’s jitoSOL and Polygon’s stMATIC.
Lido DAO has not yet commented on whether the ETF will include any revenue-sharing or governance participation from staking flows. However, the listing could reinforce stETH’s position as the default institutional gateway to liquid staking.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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