The world of cryptocurrency is buzzing with anticipation as major players in the financial sector ramp up their efforts to launch new Exchange-Traded Funds (ETFs). Despite the ongoing 17-day US government shutdown, which has delayed decisions from the Securities and Exchange Commission (SEC), firms like VanEck, ARK Invest, and 21Shares are pushing ahead with ambitious filings that signal their confidence in the crypto market.
VanEck has recently filed for a Lido Staked Ethereum ETF, designed to track Lido’s liquid staking token, stETH. This innovative ETF aims to combine the benefits of staking rewards with daily liquidity, setting it apart from traditional crypto ETFs that primarily focus on asset tracking. The trust, registered in Delaware on October 2, is expected to accrue staking rewards through its ownership of stETH, which represents staked Ethereum and allows holders to earn yield while maintaining liquidity. With Lido managing approximately 8.5 million ETH, valued at around $33 billion, this ETF could attract significant investor interest.
Meanwhile, ARK Invest is also making waves in the crypto space by submitting applications for three new Bitcoin-based ETFs. The ARK Bitcoin Yield ETF intends to generate returns through option selling and various income-based strategies, allowing investors to potentially earn yields alongside Bitcoin price movements. Furthermore, ARK introduced two DIET Bitcoin ETFs, both featuring built-in downside protection. DIET Bitcoin 1 provides 50% downside protection and offers exposure to upside opportunities after a 5% price increase each quarter. On the other hand, DIET Bitcoin 2 offers 10% protection while allowing for greater upside potential. These filings underscore a strategic shift toward risk-managed structures that cater to cautious institutional investors.
In a similar vein, 21Shares has filed for a 2x leveraged crypto ETF that is linked to the Hyperliquid token, HYPE. This product aims to provide amplified returns based on the token’s daily performance, further diversifying the range of offerings available to crypto investors. Additionally, Volatility Shares has proposed ambitious plans for 3x and 5x leveraged ETFs that will focus on both crypto assets and major US stocks, reflecting a growing appetite for high-risk, high-reward investment strategies even amid regulatory uncertainties.
Amidst this flurry of activity, VanEck has also updated its Solana Staking ETF filing, reducing the proposed fee to 0.3%, a move that could enhance its competitiveness in an increasingly crowded market. As ETF analyst James Seyffart noted, the moment the government shutdown concludes, the floodgates for spot crypto ETFs could open wide, potentially reshaping the investment landscape.
This wave of filings during a period of uncertainty is not just a sign of optimism but also highlights the innovative spirit driving the crypto industry. As firms navigate the complexities of regulation and market dynamics, the emergence of new products like those from VanEck, ARK Invest, and 21Shares stands to offer investors fresh avenues for participation in the growing cryptocurrency ecosystem.
