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A recent surge of activity has occurred for US cryptocurrency exchange-traded funds this week, with a minimum of five new product applications submitted to the US Securities and Exchange Commission despite the ongoing federal government shutdown.
The latest advancement came from VanEck, which submitted an S-1 application to the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, designed to monitor the performance of stETH, Lido’s liquidity staking token.
Due to the protocol-driven liquid staking operations underlying stETH, “the trust anticipates earning certain staking rewards via its possession of stETH,” it mentioned.
VanEck initiated preliminary actions towards launching the product by registering a statutory trust in Delaware on Oct. 2.
stETH is a liquid staking token symbolizing deposited Ether (ETH) plus any staking rewards earned, enabling holders to gain yields while retaining liquidity.
Lido is the largest liquid staking platform with nearly 8.5 million ETH valued at approximately $33 billion staked. Currently, it provides a 3.3% staking yield on placed ETH.
Leveraged Hyperliquid ETF
Simultaneously, ETF creators are devising more unconventional products under the new SEC leadership. However, the US government shutdown, lasting now for 17 days, has seemingly stalled all decision-making.
Related: October is ‘ETF month’ as 16 cryptocurrency funds await final decisions
21Shares submitted for a leveraged cryptocurrency ETF featuring 2x exposure to the Hyperliquid native token, HYPE, on Thursday. The leverage pertains solely to the single-day performance of the token, rather than longer durations.
Bloomberg ETF specialist Eric Balchunas characterized the application as “so niche… but you might look up in 3-4 years and it’s amassed a few billion.”
He expressed, “It’s just a complete land rush right now,” concerning the current wave of cryptocurrency ETF applications.
ARK Invest’s new BTC offerings
Cathie Wood’s ARK Invest submitted applications for three new Bitcoin ETFs on Tuesday.
The ARK Bitcoin Yield ETF aims to create income through yield-based Bitcoin strategies, including the sale of options and the collection of premiums.
The ARK DIET Bitcoin 1 ETF provides 50% downside protection while accommodating investors to engage in the upside after a 5% rise in Bitcoin’s price each quarter. The ARK DIET Bitcoin 2 ETF offers 10% downside protection and permits further upside once Bitcoin trades above its initial price for the quarter.
Other crypto ETF news
Earlier this week, Volatility Shares submitted a new array of 3x and 5x leveraged ETFs linked to cryptocurrency and major US stocks on Tuesday, reported Balchunas.
On Wednesday, VanEck presented an updated Solana Staking ETF filing with fees set at 0.3%, noted Bloomberg ETF analyst James Seyffart.
“Once [the] government shutdown concludes, spot cryptocurrency ETF floodgates will open … Ironic that rising fiscal debt and typical political maneuvering are causing delays. Precisely what cryptocurrency is aiming at,” noted Nova Dius President Nate Geraci earlier this week.
Magazine: Binance disrupts Korea, Morgan Stanley’s security tokens in Japan: Asia Express
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