Lido DAO's token (LDO) surged 7% to $1.29, adding to a 20% rally over the past week, after asset manager VanEck formally registered its Lido Staked Ethereum exchange-traded fund (ETF) in Delaware on October 2, 2025. The registration, filed through CSC Delaware Trust Company as a statutory trust, represents a common initial step before submitting an application to the U.S. Securities and Exchange Commission (SEC). While approval is not guaranteed, this move signals VanEck's intent to expand beyond spot Bitcoin and Ethereum ETFs into yield-generating products, positioning it early in the race to bring staked Ethereum exposure to mainstream portfolios.
Market activity supported the momentum, with LDO's 24-hour trading volume rising nearly 30% to $158.5 million and derivatives volume surging 45% to $426.9 million. Open interest increased by 6.6% to $228.3 million, indicating traders are opening more positions rather than closing them, reflecting optimism about potential ETF-related inflows. The proposed ETF would expose investors to Lido's staked Ethereum (stETH), providing access to staking rewards of roughly 4% annually without the need to run validators or lock up assets.
This development builds on positive regulatory and ecosystem trends. In August, the SEC clarified that some liquid staking activities are exempt from securities registration, facilitating institutional adoption. Additionally, Lido DAO approved a buyback framework in September, allocating up to 70% of new inflows to reduce circulating supply, with a test phase expected by December. Lido dominates the liquid staking sector, accounting for over 30% of all ETH staked. Analysts project LDO could reach $1.34 to $1.75 this month and potentially $2 to $3 by year-end if conditions align, though regulatory delays or competition remain risks.
