VanEck withdraws Lido staked Ethereum ETF proposal from SEC

VanEck Digital Assets requested SEC withdrawal of its registration for the proposed Lido Staked Ethereum ETF on October 14, 2026, ending a yearlong effort to introduce the first U.S. brokerage fund holding stETH. Originally filed in October 2025, the registration never became effective, and no shares were issued. VanEck offered no detailed explanation for withdrawing the passive fund proposal, which aimed to give institutional investors exposure to Lido's liquid staking yield without direct validator custody.

Details of the ETF withdrawal

• ▪VanEck Digital Assets confirmed that no securities had been issued or sold, no preliminary prospectus had been distributed, and the registration statement never became effective for its Lido Staked Ethereum ETF.
• ▪VanEck Digital Assets submitted a SEC filing on October 14, 2026, requesting the withdrawal of its registration statement for the proposed VanEck Lido Staked Ethereum ETF under Rule 477 of the Securities Act of 1933.
• ▪VanEck Digital Assets provided no detailed rationale or explanation for its decision to withdraw the SEC registration for its proposed Lido Staked Ethereum ETF.

Design and risks of the proposed ETF

• ▪The proposed VanEck Lido Staked Ethereum ETF was designed as a passive investment vehicle that would hold Lido stETH tokens directly to track stETH's price after expenses using a MarketVector benchmark.
• ▪The proposed VanEck Lido Staked Ethereum ETF aimed to enable brokerage account investors to gain exposure to Ethereum liquid staking rewards without directly interacting with blockchain validators or managing private keys.
• ▪VanEck's Lido Staked Ethereum ETF prospectus identified risks including validator penalties, smart-contract vulnerabilities, liquidity constraints, and fluctuations in Ethereum market value.

Lido reaction and token market impact

• ▪The Lido Ecosystem Foundation welcomed VanEck's initial application in October 2025, reporting over $2 billion in cumulative staking rewards distributed and total value locked near $40 billion.
• ▪Lido's LDO governance token rallied approximately 7% following the initial announcement of VanEck's trust registration in October 2025.

SEC guidance on liquid staking

• ▪The SEC staff statement in August 2025 did not grant blanket approval or automatically authorize exchange-traded funds holding staking tokens.
• ▪In August 2025, the SEC Division of Corporation Finance issued guidance distinguishing administrative liquid staking activities from arrangements involving managerial efforts that could constitute securities transactions.
• ▪VanEck's October 2025 prospectus stated that the sponsor believed its planned staking activities were consistent with SEC staff guidance regarding liquid staking.