Crypto ETF Filings Surge as “ETFtober” Expands Despite U.S. Shutdown

The United States crypto exchange-traded fund (ETF) market is witnessing a remarkable surge in activity this week. More than five new crypto ETF applications have been submitted to the U.S. Securities and Exchange Commission (SEC) despite the ongoing 17-day government shutdown stalling approvals.

Leading the charge is VanEck, which filed an S-1 form on Thursday for its VanEck Lido Staked Ethereum ETF. The fund will track the performance of stETH, the liquid staking token issued by Lido, the largest Ethereum staking platform. According to the filing, the trust expects to earn staking rewards through its ownership of stETH. VanEck registered a statutory trust in Delaware on October 2, signaling its intent to push forward once the SEC resumes normal operations. Lido currently holds about 8.5 million ETH worth roughly $33 billion, offering an average yield of 3.3% to depositors.

Meanwhile, 21Shares has submitted a filing for a 2x leveraged ETF tied to Hyperliquid’s native token (HYPE). The leveraged exposure applies only to single-day performance, creating a highly speculative product. Bloomberg’s crypto ETF expert Eric Balchunas described the filing as “so niche,” yet noted that even such products could attract billions over time, calling the current wave of filings “a total land rush.”

Cathie Wood’s ARK Invest has also expanded its presence with three new Bitcoin ETFs, each offering unique risk and reward structures. The ARK Bitcoin Yield ETF focuses on generating income through yield-based strategies such as option writing. The ARK DIET Bitcoin 1 ETF provides 50% downside protection with upside participation after a 5% quarterly gain, while the DIET Bitcoin 2 ETF offers 10% protection and enhanced returns once Bitcoin surpasses its baseline for the quarter.

Adding to the rush, Volatility Shares filed a new suite of 3x and 5x leveraged ETFs tied to both crypto and major U.S. equities, and VanEck updated its Solana Staking ETF proposal with a reduced fee of 0.3%.

Industry observers believe that once the shutdown ends, the SEC will be flooded with ETF approvals. As Nate Geraci, president of The ETF Store, remarked, “Once the government shutdown ends, spot crypto ETF floodgates open… ironic that the same fiscal gridlock holding these up is what crypto seeks to solve.”