Asset manager VanEck has moved to withdraw its application to register an exchange-traded fund (ETF) that would directly include Lido's liquid staking token stETH.

On Oct. 14 local time, blockchain outlet The Defiant reported that the fund was designed to hold stETH directly and allow investment in Lido's liquid staking token through brokerage accounts, but its registration had not taken effect.

The key point was that the product was structured to hold stETH directly rather than spot ether itself. stETH is Lido's flagship liquid staking token and is designed to maintain liquidity in token form even after depositing ether. VanEck's product sought to bring that structure into an ETF and make it accessible through regular brokerage accounts.

The application ultimately did not take effect, and VanEck entered the withdrawal process. As a result, the attempt to create a regulated product route that provides stETH exposure through brokerage accounts has been put on hold for now.

In terms of product structure, it was an attempt to go a step beyond spot cryptocurrency ETFs. The fund was designed to hold stETH directly, a staking derivative token rather than ether itself. It also sought to improve access by allowing investors to invest through existing brokerage accounts. But because the registration did not take effect, it did not lead to an actual launch.

If the product had been completed, investors would likely have been able to gain indirect exposure to stETH without using a crypto wallet or going through on-chain procedures. For now, that plan has not been connected to a regulated investment product. In particular, packaging an asset like stETH, which combines a staking reward structure with a liquid token mechanism, into an ETF shows it could face a higher review threshold than standard spot products.

Against that backdrop, the withdrawal showed that which digital assets can be included and under what structure remains a key variable even in the crypto ETF market. VanEck's filing stopped before it took effect, and the timeline for an ETF that holds stETH directly has become uncertain again.