Asset Manager VanEck Abandons Plans for Liquid Staking ETF Product

Key Points

• VanEck has submitted a formal withdrawal request to the SEC for its Lido staked Ether ETF proposal.
• The investment manager confirmed it will not move forward with distributing shares of the planned fund.
• Initial registration documents for the product were submitted to regulators on Oct. 16, 2025.
• The proposed ETF was designed to hold Lido staked Ether (stETH) and generate staking income.
• No rationale for the withdrawal was provided, nor any indication of alternative products being considered.

Investment management firm VanEck has formally requested that the U.S. Securities and Exchange Commission permit the withdrawal of its application for a Lido staked Ether exchange-traded fund. The decision puts an end to plans for a product that would have offered investors access to liquid staking derivatives.

The withdrawal request was submitted through a filing dated Oct. 14, 2026. In the document, VanEck Digital Assets confirmed it “does not intend to proceed with the planned distribution” of the trust’s shares.

No explanation was offered for the reversal. The firm has not indicated whether it is considering alternative investment vehicles in this space.

Original Fund Structure and Investment Thesis

VanEck initially submitted the fund’s S-1 registration statement on Oct. 16, 2025. The S-1 form is the standard document required for registering new securities offerings with the SEC.

The investment vehicle was designed to hold Lido staked Ether, commonly referred to as stETH. This derivative token represents Ethereum that has been staked via the Lido protocol.

The initial registration documents indicated that the fund anticipated earning specific staking rewards derived from its stETH holdings. These rewards are distributed to participants who commit tokens to support the security and validation mechanisms of blockchain networks.

The proposal was among a wave of cryptocurrency ETF applications submitted during October 2025.

Formal Withdrawal Documentation

The withdrawal was submitted using Form RW, the standard request for withdrawal document. It was filed in accordance with Rule 477 of the Securities Act of 1933.

The correspondence was directed to the SEC’s Division of Corporation Finance located in Washington, D.C. Matthew A. Babinsky, serving as vice president at VanEck Digital Assets, signed the submission.

VanEck requested that the SEC grant approval for the withdrawal effective as of the filing date, or at the earliest feasible date thereafter. The request encompasses the initial registration statement, all subsequent amendments, and all related exhibits.

The company stated that its sole basis for withdrawing is that it has decided against proceeding with the distribution of the trust’s shares. No additional justification was included in the correspondence.

VanEck also verified several key details regarding the fund’s regulatory status. The registration statement was never granted effectiveness by the SEC.

The firm confirmed that no shares were ever issued or sold pursuant to the registration statement, and none will be issued going forward. Additionally, no preliminary prospectus for the fund was ever distributed to potential investors.

The letter identified two attorneys from the law firm Sidley Austin LLP as points of contact for any inquiries. The named contacts are Cliff Cone and Etherial Edetan.

The registration statement was assigned SEC file number 333-290918. VanEck Digital Assets maintains its headquarters at 666 Third Avenue in New York City.

Cointelegraph contacted VanEck Digital Assets seeking additional details about the withdrawal decision. As of now, the company has not issued any public statement explaining the rationale behind abandoning the fund proposal.