Key insights:
- VanEck has filed an S-1 registration file for the Lido Staking ETH ETF with the U.S. SEC.
- If approved, the fund would be the first to offer institutional investors exposure to staked Ethereum.
- LDO, Lido’s native token, recently broke out of a well-defined descending channel on the 4-hour chart after the news of the upcoming fund came out.
VanEck has filed an S-1 registration file for the Lido Staking ETH ETF with the U.S. Securities and Exchange Commission (SEC).
The upcoming fund will offer investors exposure to ETH or stETH staked through the Lido protocol.
VanEck nears launch of Lido staking ETH ETF
The proposed fund will be named VanEck Lido Staked Ethereun ETF and its primary purpose will be to provide investors with exposure to Ethereum.
The Lido Protocol is a decentralized platform where ETH is staked and investors can earn staking rewards without locking up the assets themselves.
The S-1 filing means VanEck is close to launching the fund and is awaiting the SEC’s green light to list the product for trading.
Lido is one of Ethereum’s leading staking platforms, staking $38 billion worth of ETH. This represents about one-third of the total amount of Ethereum staked.
The decentralized protocol has also been a top performer among Ether proof-of-stake system providers, allowing users to consistently earn yield while ensuring investor liquidity through stETH derivative tokens.
The newly established fund will operate as an investment vehicle that holds interest-bearing assets and will hold staked ETH instead of traditional bonds or cash. This new model by Lido aims to provide institutions with exposure to staked cryptocurrencies.
The fund will act as a wrapper aimed at removing the technical limitations of directly staking cryptocurrencies such as ETH.
Lido (LDO) price breaks above the descending channel
LDO recently broke out of a well-defined descending channel on the 4-hour chart, hinting at a potential change in market sentiment.
For several weeks, the token has been trading within a downward range, consistently respecting both the upper and lower bounds of the channel.
However, the latest price action has decisively broken above the channel’s resistance line, an early indication that buyers are regaining control.
After the breakout, the price fell back to retest the old resistance, which is now serving as support.
This successful retest adds confidence to the bullish setup and confirms that the breakout was not a false move.
Additionally, the intersection of the breakout level and the 50-period moving average strengthens the overall structure and strengthens buyer confidence.
If the momentum continues to build further, the next important level to watch is near the $2.70 resistance area where previous supply is limiting upside.
A clean breakout of this zone could open the door to a broader continuation of the rally.
On the downside, maintaining support above the $2.00 level remains important to maintain the bullish outlook.
Lido price |Source: TradingView
Meanwhile, a bullish pattern emerged with the news that VanEck filed an S-1 file for the Lido Stake Ethereum ETF. If approved, the fund would be the first to offer institutional investors exposure to staked Ethereum.
