VanEck Digital Assets has asked the U.S. Securities and Exchange Commission (SEC) to withdraw its application for a proposed Lido Staked Ethereum ETF, ending a registration process that began nearly a year ago. The decision halts plans for a publicly traded product that would have allowed brokerage investors to gain exposure to liquid-staked Ether.

In its request, VanEck sought to withdraw the registration statement, all related amendments, and supporting exhibits under Rule 477 of the Securities Act of 1933. The filing carries registration number 333-290918 and follows the firm’s initial S-1 submission on October 16, 2025.

The company confirmed that it no longer intends to distribute shares of the proposed ETF. Its filing also noted that the registration statement had never become effective, no securities had been issued or sold under it, and no preliminary prospectus had been distributed.

Because the fund never launched, the withdrawal does not involve existing investors redeeming shares or fund managers selling assets to meet redemption requests. No ETF holdings need to be liquidated as part of the process. VanEck requested that the SEC make the withdrawal effective on October 14 or as soon as practicable afterward.

The proposed fund was intended to hold stETH, Lido’s liquid-staking token, rather than LDO, the protocol’s governance token. Its objective was to track stETH’s price performance after expenses while reflecting staking rewards, using a passive investment strategy tied to a MarketVector benchmark.

Although institutional participation and ETF flows remain important to the Ethereum market, the abandoned proposal will not provide investors with an additional listed route to liquid-staking exposure. The withdrawal itself does not explain why VanEck decided to discontinue the application.

What the Proposed Lido Staked Ethereum ETF Would Have Offered

Lido allows users to stake Ether and receive stETH in return. The token represents their staking position and associated rewards, while its rebasing mechanism can increase the token balance as rewards accumulate.

The proposed ETF would have differed from a conventional spot Ether fund because its underlying asset would have been stETH rather than ETH itself. Investors would therefore have been exposed to the liquid-staking token’s pricing behavior and the risks associated with Lido’s staking infrastructure.

The fund’s prospectus outlined potential concerns, including validator penalties, smart-contract exploits, liquidity limitations, and fluctuations in Ethereum’s market price. These factors could have affected both the underlying holdings and the proposed fund’s investment performance.

In August 2025, SEC staff issued a statement addressing certain liquid-staking activities, distinguishing qualifying arrangements from those that might involve managerial or entrepreneurial efforts. The statement was conditional and did not represent automatic approval for investment funds holding liquid-staking tokens.

Ethereum’s network development continues, including testing involving its gas limit. However, technical progress does not independently resolve regulatory uncertainty or remove the risks associated with liquid-staking products.

Lido Previously Welcomed VanEck’s Filing

The Lido Ecosystem Foundation welcomed VanEck’s ETF application in October 2025, describing it as a potential connection between decentralized liquid staking and traditional financial markets. Kean Gilbert, who was identified at the time as the foundation’s head of institutional relations, also emphasized the potential importance of institutional staking products.

In its announcement, Lido reported that users had earned more than $2 billion in staking rewards since the protocol’s launch. The foundation also estimated the protocol’s total value locked at approximately $40 billion.

VanEck has not indicated whether it intends to file another Lido-related ETF application or pursue a different investment product connected to staking. The latest request therefore closes the current registration process without the proposed fund reaching the market.