New Wave of Crypto ETFs: Five Applications Filed Amid Government Shutdown
This week saw a surge in applications for crypto exchange-traded funds (ETFs) despite a government shutdown, featuring major filings from prominent financial firms.
This week, there has been considerable movement regarding U.S. crypto exchange-traded funds (ETFs). Despite the ongoing government shutdown, at least five new applications have been submitted to the U.S. Securities and Exchange Commission (SEC).
Key among these is VanEck’s recent filing for the VanEck Lido Staked Ethereum ETF, submitted on Thursday, which aims to track the performance of Lido’s liquid staking token, stETH. VanEck is advancing this product by registering a statutory trust in Delaware, taking initial steps as early as October 2.
Lido’s stETH represents deposited Ether and staking rewards, enabling token holders to earn yields while maintaining liquidity. Impressively, Lido currently leads the market with nearly 8.5 million ETH, worth approximately $33 billion in staked assets, and offers a staking yield of 3.3%.
New Products From ETF Issuers
Meanwhile, other ETF issuers are turning out unique products amid new SEC leadership. Although the government shutdown has stalled decision-making for 17 days, 21Shares has recently filed for a leveraged crypto ETF offering 2x exposure to the Hyperliquid token, HYPE. This leverage applies to the token’s single-day performance.
Eric Balchunas, an ETF expert at Bloomberg, commented on this distinct filing, describing it as quite niche yet potentially valuable in the future.
ARK Invest’s Bitcoin ETFs
Cathie Wood’s ARK Invest also made headlines by filing for three new Bitcoin ETFs this past Tuesday. The ARK Bitcoin Yield ETF aims to generate income via yield-based strategies, including selling options and collecting premiums, while the ARK DIET Bitcoin ETFs provide investors with downside protection while allowing participation in upside gains when Bitcoin’s price increases.
In addition, Volatility Shares submitted filings for new 3x and 5x leveraged ETFs linked to various cryptocurrencies and U.S. stocks. As the government shutdown persists, industry observers, including Nova Dius President Nate Geraci, have noted the irony, suggesting that it holds back the anticipated rush of spot crypto ETFs that crypto advocates have been aiming for.
