VanEck asks SEC to withdraw registration for planned Lido staked Ethereum ETF

VanEck has asked the US securities regulator to withdraw the registration for its planned Lido Staked Ethereum ETF, BTC-ECHO reports, roughly a year after the asset manager first applied for the product. The asset manager sent the request in a letter filed with the SEC on 14 October. The planned ETF was meant to give institutional and private investors Ethereum price exposure alongside staking rewards, which BTC-ECHO says were to be paid out in stETH, the token users receive for depositing Ether with the Lido protocol. BTC-ECHO writes that it is unclear whether weak demand played a role in the withdrawal, and notes that US Ethereum spot ETFs saw net outflows in the first two weeks of October. The same outlet points to VanEck already selling a European Ethereum product with staking as a reason the problem is unlikely to lie in staking products themselves. BTC-ECHO is the only outlet in the desk's evidence that reports this, and it gives no reason from the company for the withdrawal.