This week has been bustling with applications for new crypto exchange-traded funds (ETFs) in the United States, with at least five proposals submitted to the Securities and Exchange Commission amidst an ongoing government shutdown.
The latest submission was from VanEck, which filed an S-1 form on Thursday for the VanEck Lido Staked Ethereum ETF, intended to track the performance of stETH, the liquid staking token from Lido.
Due to the underlying protocol-based activities of stETH, “the trust anticipates accruing certain staking rewards through its ownership of stETH,” was stated in the filing. VanEck initiated the launch by registering a statutory trust in Delaware on October 2.
stETH functions as a liquid staking token representing the deposited Ether (ETH) alongside any staking rewards, which enables holders to earn yields while keeping liquidity.
Lido, recognized as the leading liquid staking platform, has about 8.5 million ETH staked, valued around $33 billion, currently providing a staking yield of 3.3% on deposited ETH.
Leveraged Hyperliquid ETF
In the meantime, with the SEC’s new leadership, issuers are developing increasingly exotic ETF products. However, the ongoing government shutdown, now lasting for 17 days, has seemingly halted all decision-making processes.
21Shares has filed for a leveraged crypto ETF with 2x exposure to the Hyperliquid token, HYPE, this Thursday. It’s worth noting that the leverage applies solely to the daily performance of the token, rather than over extended periods.
Bloomberg’s ETF specialist Eric Balchunas expressed that the filing is “so niche… but then you could envision looking back in several years and discovering it’s gathered a substantial following.”
He described the current surge of crypto ETF filings simply as “a total land rush right now.”
ARK Invest’s New BTC Offerings
Cathie Wood’s ARK Invest has also filed for three new Bitcoin ETFs. The ARK Bitcoin Yield ETF is specifically designed to generate income through yield-based strategies related to Bitcoin, such as selling options and collecting premiums.
The ARK DIET Bitcoin 1 ETF provides 50% downside protection while allowing investors to gain from the upside after a 5% increase in Bitcoin price each quarter. The ARK DIET Bitcoin 2 ETF affords 10% downside protection, offering more potential gains once Bitcoin’s price exceeds its starting value for the quarter.
Additional Crypto ETF News
Earlier in the week, Volatility Shares filed for a new lineup of leveraged ETFs connected to crypto and major US stocks. On Wednesday, VanEck resubmitted an updated Solana Staking ETF with fees set at 0.3%.
Nova Dius President Nate Geraci commented, “Once the government shutdown inevitably ends, the spot crypto ETF floodgates will open … it’s ironic that the growing fiscal debt and usual political antics are causing these delays, which is precisely what crypto aims to address.”
