{"id":17076,"date":"2025-10-17T08:10:43","date_gmt":"2025-10-17T06:10:43","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17076"},"modified":"2025-10-17T08:10:43","modified_gmt":"2025-10-17T06:10:43","slug":"crypto-etf-applications-surge-at-sec-amid-government-shutdown","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/17\/crypto-etf-applications-surge-at-sec-amid-government-shutdown\/","title":{"rendered":"Crypto ETF Applications Surge at SEC Amid Government Shutdown"},"content":{"rendered":"

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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.<\/p>\n

The latest advancement came from VanEck, which submitted<\/a> an S-1 application to the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, designed to monitor the performance of stETH, Lido\u2019s liquidity staking token.<\/p>\n

Due to the protocol-driven liquid staking operations underlying stETH, \u201cthe trust anticipates earning certain staking rewards via its possession of stETH,\u201d it mentioned.<\/p>\n

VanEck initiated preliminary actions towards launching the product by registering a statutory trust in Delaware on Oct. 2.<\/p>\n

stETH is a liquid staking token symbolizing deposited Ether (ETH<\/a>) plus any staking rewards earned, enabling holders to gain yields while retaining liquidity.<\/p>\n

Lido is the largest<\/a> 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.<\/p>\n

Lido commands the majority of staked Ether. Source: <\/em>Dune Analytics<\/em><\/a><\/figcaption><\/figure>\n

Leveraged Hyperliquid ETF<\/h2>\n

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.<\/p>\n

Related: <\/strong><\/em>October is \u2018ETF month\u2019 as 16 cryptocurrency funds await final decisions<\/strong><\/em><\/a><\/p>\n

21Shares submitted<\/a> for a leveraged cryptocurrency ETF featuring 2x exposure to the Hyperliquid<\/a> native token, HYPE, on Thursday. The leverage pertains solely to the single-day performance of the token, rather than longer durations.<\/p>\n

Bloomberg ETF specialist Eric Balchunas characterized<\/a> the application as \u201cso niche\u2026 but you might look up in 3-4 years and it\u2019s amassed a few billion.\u201d<\/p>\n

He expressed, \u201cIt\u2019s just a complete land rush right now,\u201d concerning the current wave of cryptocurrency ETF applications.<\/p>\n

ARK Invest\u2019s new BTC offerings<\/h2>\n

Cathie Wood\u2019s<\/a> ARK Invest submitted<\/a> applications for three new Bitcoin ETFs on Tuesday.<\/p>\n

The ARK Bitcoin Yield ETF aims to create income through yield-based Bitcoin strategies, including the sale of options and the collection of premiums.<\/p>\n

The ARK DIET Bitcoin 1 ETF provides<\/a> 50% downside protection while accommodating investors to engage in the upside after a 5% rise in Bitcoin\u2019s 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.<\/p>\n

Other crypto ETF news<\/h2>\n

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<\/a> Balchunas.<\/p>\n

On Wednesday, VanEck presented an updated Solana Staking ETF filing with fees set at 0.3%, noted<\/a> Bloomberg ETF analyst James Seyffart.<\/p>\n

\u201cOnce [the] government shutdown concludes, spot cryptocurrency ETF floodgates will open \u2026 Ironic that rising fiscal debt and typical political maneuvering are causing delays. Precisely what cryptocurrency is aiming at,\u201d noted<\/a> Nova Dius President Nate Geraci earlier this week.<\/p>\n

Magazine: <\/strong><\/em>Binance disrupts Korea, Morgan Stanley\u2019s security tokens in Japan: Asia Express<\/strong><\/em><\/a><\/p>\n