Flurry of New Crypto ETF Filings Amid Government Freeze
The month of October—nicknamed “ETFtober” by analysts—is shaping up to be one of the busiest periods for crypto exchange-traded fund (ETF) applications in U.S. history. At least five new crypto ETFs were filed with the Securities and Exchange Commission (SEC) this week, even as the U.S. government shutdown has stalled many regulatory decisions.
The most notable filing came from VanEck, which submitted an S-1 form for its VanEck Lido Staked Ethereum ETF on Thursday. The fund aims to track stETH, the liquid staking token issued by Lido Finance, the largest Ethereum staking platform.
According to the filing, “The trust expects to accrue certain staking rewards through its ownership of stETH,” signaling that investors could indirectly earn staking yields while maintaining liquidity. VanEck registered the ETF’s statutory trust in Delaware on Oct. 2, a step toward formal product approval.
Currently, Lido holds around 8.5 million ETH, worth approximately $33 billion, offering a 3.3% staking yield to depositors.
21Shares Introduces Leveraged Hyperliquid ETF
In a more experimental move, 21Shares filed for a 2x leveraged ETF tied to the Hyperliquid native token (HYPE). The leverage applies only to the token’s single-day performance, making it one of the most niche crypto ETF products on the market.
Bloomberg ETF analyst Eric Balchunas described it as “so niche… but then you could look up in 3–4 years and it’s got a few billion.” He added, “It’s just a total land rush right now,” referring to the wave of filings targeting every corner of the crypto sector.
Meanwhile, Cathie Wood’s ARK Invest filed for three new Bitcoin ETFs on Tuesday, designed to attract both conservative and high-yield investors.
- The ARK Bitcoin Yield ETF seeks to generate income through option-selling strategies.
- The ARK DIET Bitcoin 1 ETF offers 50% downside protection with limited quarterly upside.
- The ARK DIET Bitcoin 2 ETF provides 10% downside protection and enhanced upside potential after Bitcoin surpasses its starting price for the quarter.
Earlier this week, Volatility Shares filed for 3x and 5x leveraged ETFs tied to crypto and U.S. stock indexes, while VanEck updated its Solana Staking ETF proposal with a 0.3% management fee.
Nate Geraci, president of The ETF Store, commented, “Once the government shutdown ends, spot crypto ETF floodgates open… Ironic that growing fiscal debt and political theater are holding these up. Exactly what crypto is targeting.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.