VanEck Approaches The Launch of its Lido Staked ETH ETF
VanEck has submitted the S-1 registration file for the Lido staked ETH ETF with the United States Securities and Exchange Commission (SEC). The upcoming fund is designed to provide investors with exposure to staked ETH, also known as stETH, which will be staked through the Lido protocol.
The proposed fund, to be named the VanEck Lido Staked Ethereum ETF, aims to offer investors exposure to Ethereum. The Lido protocol is a decentralized platform where ETH can be staked, allowing investors to earn staking rewards without the necessity of locking up their assets.
The submission of the S-1 file signifies that VanEck is nearing the launch of the fund and is awaiting approval from the SEC to list the product for trading. Lido stands as a dominant staking platform for Ethereum, managing over $38 billion worth of staked ETH, which represents approximately one-third of the total staked Ethereum.
The decentralized protocol has consistently been a top performer in providing services for Ethereum's proof-of-stake system. It has reliably enabled users to earn yield while ensuring investors maintain liquidity through the stETH derivative tokens.
This new fund will function as an investment vehicle that holds an interest-bearing asset. Instead of traditional bonds or cash, the fund will hold staked ETH, offering institutions exposure to staked crypto. The fund is structured as a wrapper intended to eliminate the technical complexities associated with directly staking cryptocurrencies like ETH.
Lido (LDO) Price Breaks Above Descending Channel
The native token of Lido, LDO, has recently experienced a breakout from a well-defined descending channel on the 4-hour chart, indicating a potential shift in market sentiment.
For several weeks, the LDO token had been trading within a downward-sloping range, consistently respecting both the upper and lower boundaries of the channel. However, recent price action shows a decisive move above the channel's resistance line, serving as an early indicator of buyers regaining control.
Following this breakout, the price has pulled back to retest the former resistance level, which is now acting as support. This successful retest adds conviction to the bullish setup, confirming that the breakout is not a false signal.
Furthermore, the confluence of the breakout level with the 50-period moving average strengthens the overall market structure and reinforces buyer confidence.
If upward momentum continues, the next significant resistance level to monitor is approximately the $2.70 area, where previous selling pressure has historically capped upward price movements. A clear break above this zone could pave the way for a more substantial continuation rally.
On the downside, maintaining support above the $2.00 level is considered crucial for sustaining the bullish outlook for LDO.
This bullish pattern emerged concurrently with the news of VanEck submitting the S-1 filing for the Lido Staked Ethereum ETF. Upon approval, this fund is expected to be the first of its kind to offer institutional investors direct exposure to staked Ethereum.