VanEck Digital Assets has requested that the U.S. Securities and Exchange Commission (SEC) withdraw the registration statement for its proposed Lido Staked Ethereum ETF, ending the application process nearly a year after it began. The product was intended to give brokerage investors access to staked Ether through a publicly traded investment fund.
In its submission, VanEck asked the regulator to withdraw the registration statement, its amendments, and related exhibits under Rule 477 of the Securities Act of 1933. The request references registration number 333-290918 and follows the company’s initial S-1 filing on October 16, 2025.
The asset manager stated that it no longer plans to distribute shares of the proposed ETF. According to the filing, the registration statement had not taken effect, no securities had been issued or sold under the application, and no preliminary prospectus had been circulated to investors.
Because the fund never became operational, its withdrawal does not involve existing shareholders or assets that need to be sold to cover redemptions. There are no ETF investors awaiting repayment and no portfolio holdings that must be liquidated. VanEck requested that the SEC approve the withdrawal effective October 14 or at the earliest practicable date afterward.
The proposed fund was designed to hold stETH, Lido’s liquid-staking token, rather than LDO, the protocol’s governance asset. Its investment strategy aimed to track stETH’s price performance after expenses while reflecting staking rewards, using a MarketVector benchmark and a passive management approach.
Ethereum investment products continue to respond to institutional demand and changing ETF flows. However, VanEck’s decision means the proposed fund will not become another listed product offering exposure to liquid-staked Ether. Broader Ethereum market activity provides context for the decision, but does not establish why the company withdrew its application.
Understanding the Proposed ETF’s stETH Holdings
Lido allows users to stake Ether through its protocol in exchange for stETH, a liquid-staking token that represents their position and associated staking rewards. Through its rebasing mechanism, the token balance can increase as rewards accumulate.
Holding stETH differs from owning spot ETH directly. VanEck’s proposed fund would have provided exposure to the liquid-staking token, including its distinct pricing and operational characteristics, rather than replicating a conventional Ether investment product.
The fund’s prospectus highlighted several risks, including validator penalties, vulnerabilities in smart contracts, potential liquidity restrictions, and fluctuations in Ethereum’s market price. These factors could have affected the value and performance of the proposed investment vehicle.
In August 2025, SEC staff published guidance addressing certain liquid-staking arrangements. The statement distinguished qualifying staking activities from arrangements that could involve managerial or entrepreneurial efforts. However, the guidance was conditional and did not amount to blanket regulatory approval for ETFs holding liquid-staking tokens.
Ethereum’s technical development continues, including testing related to the network’s gas limit. Nevertheless, improvements to the blockchain do not automatically resolve the regulatory questions or investment risks associated with liquid-staking products.
Lido Previously Backed the ETF Application
The Lido Ecosystem Foundation welcomed VanEck’s proposal when it was submitted in October 2025, describing the initiative as a potential link between liquid staking and conventional investment markets. Kean Gilbert, identified at the time as the foundation’s head of institutional relations, also emphasized the potential role of institutional staking products.
In its announcement that month, Lido reported that users had earned more than $2 billion in staking rewards since the protocol’s launch. The foundation also estimated the protocol’s total value locked at approximately $40 billion.
VanEck has not announced whether it will pursue another ETF application involving Lido or develop a different investment product tied to staking. The withdrawal therefore closes the current registration process without bringing the proposed fund to market.
