Crypto ETF Frenzy Grows Despite US Government Shutdown

Five new crypto ETF applications were filed with the US Securities and Exchange Commission (SEC) this week.

Signaling an ongoing boom in digital asset investment products even amid a government shutdown that has halted decision-making at the agency.

VanEck Filed a key S-1 form on Thursday for its Lido Staked Ethereum ETF, which will track stETH, Lido's liquid staking token.

This product is designed to accrue staking rewards through ownership of stETH, which represents deposited Ether (ETH) plus staking yields.

VanEck took early steps toward launching this fund by registering a statutory trust in Delaware earlier in October.

Lido remains the largest liquid staking platform, holding approximately 8.5 million ETH valued near $33 billion, with a staking yield presently around 3.3% on deposited ETH.

Leveraged and Income-Generating Crypto ETFs Enter the Market

Alongside VanEck's filing, 21Shares submitted an application for a leveraged crypto ETF, offering 2x exposure to their native token HYPE.

This leveraged product focuses on single-day token performance rather than long-term duration. The market sees this as part of a broader wave of innovative ETF structures emerging under new SEC leadership.

ARK Invest also filed for three new Bitcoin ETFs this week. These include the ARK Bitcoin Yield ETF, which aims to generate income through yield-based strategies such as options selling and premium collecting.

Two others, ARK DIET Bitcoin 1 and 2 ETFs, provide varying levels of downside protection paired with opportunities for upside participation based on Bitcoin’s price movements each quarter.

Other filings this week included Volatility Shares’ proposed 3x and 5x leveraged ETFs tied to crypto and major U.S. stocks, and VanEck’s updated Solana Staking ETF featuring low fees of 0.3%.

Despite a 17-day government shutdown freezing all SEC decisions, market observers expect the approval floodgates to open once the shutdown ends.

The momentum comes as October is dubbed “ETF month” with 16 crypto funds already awaiting final approvals.

One expert highlighted the irony that political deadlock is holding up products directly aiming to innovate finance through crypto.

This flurry of filings reflects growing institutional interest and experimentation with both traditional and novel crypto investment vehicles, positioning ETFs as a key channel for exposure to digital assets in 2025.MrBeast Files Trademark for Financial Platform, Eyes Influencer-Led Banking Revolution