There has been a recent flurry of activity for US crypto exchange-traded funds this week, with at least five new product applications filed with the US Securities and Exchange Commission despite the ongoing government shutdown.
The most recent development came from VanEck, which filed an S-1 form with the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, which will track the performance of stETH, Lido’s liquid staking token.
As a result of the protocol-based liquid staking activities underlying stETH, “the trust expects to accrue certain staking rewards through its ownership of stETH,” it stated.
VanEck took early steps toward launching the product by registering a statutory trust in Delaware on Oct. 2.
stETH is a liquid staking token that represents deposited Ether (ETH) plus any staking rewards that accrue, allowing holders to earn yields while maintaining liquidity.
Lido is the largest liquid staking platform with almost 8.5 million ETH worth around $33 billion staked. It currently offers a 3.3% staking yield on deposited ETH.
Lido has the lion’s share of staked Ether. Source: Dune Analytics
Leveraged Hyperliquid ETF
Meanwhile, ETF issuers are concocting more exotic products under the new SEC leadership. However, the US government shutdown, which has now lasted for 17 days, has seemingly frozen all decision-making.
Related: October is ‘ETF month’ as 16 crypto funds await final decision
21Shares filed for a leveraged crypto ETF with 2x exposure to the Hyperliquid native token, HYPE, on Thursday. The leverage applies only to the single-day performance of the token, instead of extended periods.
Bloomberg ETF expert Eric Balchunas described the filing as “so niche… but then you could look up in 3-4 years it’s got a few billion.”
It’s “just a total land rush right now,” he said regarding the current slew of crypto ETF filings.
ARK Invest’s new BTC offerings
Cathie Wood’s ARK Invest filed for three new Bitcoin ETFs on Tuesday.
The ARK Bitcoin Yield ETF is designed to generate income through yield-based Bitcoin strategies, including selling options and collecting premiums.
The ARK DIET Bitcoin 1 ETF offers 50% downside protection while allowing investors to participate in the upside after a 5% increase in Bitcoin’s price each quarter. The ARK DIET Bitcoin 2 ETF provides 10% downside protection and allows additional upside once Bitcoin trades above its starting price for the quarter.
Other crypto ETF news
Earlier this week, Volatility Shares filed for a new range of 3x and 5x leveraged ETFs tied to crypto and major US stocks on Tuesday, reported Balchunas.
On Wednesday, VanEck submitted an updated Solana Staking ETF filing with fees at 0.3%, reported Bloomberg ETF analyst James Seyffart.
“Once [the] government shutdown ends, spot crypto ETF floodgates open … Ironic that growing fiscal debt and usual political theater holding these up. Exactly what crypto is targeting,” said Nova Dius President Nate Geraci earlier this week.
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