Asset manager VanEck has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to launch the country’s first staked Ethereum exchange-traded fund (ETF). Despite the potentially significant development, Ethereum’s market has shown a muted response, with the asset facing stiff resistance near the $4,100 price level amid mixed technical signals.

A New Path for Institutional Staking

The proposed fund, named the VanEck Lido Staked Ethereum ETF, is designed to track the price performance of Lido’s liquid staking token, stETH. The product would also capture staking rewards, offering institutional investors a regulated vehicle to gain exposure to Ethereum staking yields without needing to hold and stake ETH directly.

In a statement, Lido Finance noted that an approved ETF would provide institutions with a “compliant, tax-efficient way” to access staking returns. The organization also highlighted that using stETH allows for smooth creations and redemptions, bypassing the sometimes lengthy withdrawal periods associated with native Ethereum staking.

Shifting Regulatory Landscape

The timing of VanEck’s filing aligns with a more accommodating regulatory environment in the United States. Recent SEC guidance has clarified that proof-of-stake and liquid staking activities generally do not fall under securities laws. This clarification has paved the way for firms to more confidently launch staking-related financial products.

Lido further explained that under this new framework, staking receipt tokens are not considered securities because the underlying assets they represent are not securities. However, the SEC has not yet issued a final decision on VanEck’s application or other similar filings that incorporate staking components.

Ethereum’s Price Meets Resistance

The market’s reaction has been choppy. Data from Coinglass shows that over $144 million in ETH futures were liquidated in the last 24 hours, with $81.7 million from short positions and $62.6 million from longs. After bouncing from the $3,815 support level, ETH has struggled to overcome the significant resistance zone at $4,100.

If Ethereum can decisively break past this hurdle, analysts see the next targets at $4,270 and $4,500. Conversely, if momentum falters and the price drops below $3,815, a further decline toward $3,500 is possible. Technical indicators remain cautious, with the Relative Strength Index (RSI) below the 50 midpoint and the MACD histogram showing bearish momentum, though selling pressure appears to be easing.

Market Awaits Official Approval

For now, traders seem to be waiting for a definitive approval from the SEC before pricing in any long-term optimism. A green light for VanEck’s product could open a new chapter for institutional exposure to ETH staking and introduce fresh liquidity into the ecosystem. Until then, the $4,100 level remains the critical line for Ethereum’s short-term trajectory.

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Paradigm Hires Ignite Decentralization Concerns

A debate over the growing influence of venture capital (VC) firms in the Ethereum ecosystem has intensified after two prominent researchers accepted roles with projects backed by Paradigm. The moves have sparked community concerns about the network’s long-term decentralization and development path.

Dankrad Feist, a highly respected member of the Ethereum Foundation, announced his departure to join Tempo, a new layer-1 blockchain focused on payments and stablecoins. Shortly after, it was noted that Mallesh Pai, formerly with Consensys, had joined Paradigm as a research adviser and is slated to move to Tempo full-time in September.

These hires led to discussions on social media, with some users arguing that Paradigm could gain excessive control over the talent and ideas shaping Ethereum’s future. The worry is that an increasing number of corporate-backed blockchains like Tempo could divert resources and talent away from public, decentralized networks.

However, other developers and analysts suggest that Paradigm’s support could provide researchers like Feist and Pai with the freedom, funding, and infrastructure to explore innovative ideas that may ultimately benefit the entire crypto industry.

Lubin Frames VCs as a Temporary Bridge

In response to the discussion, Ethereum co-founder Joseph Lubin characterized the role of VCs as a normal and temporary phase in the industry’s growth. He argued that venture capital currently serves as a necessary bridge, connecting the vast pools of global capital with emerging projects in the crypto space.

Lubin explained that many traditional investors don’t yet fully understand or trust cryptocurrency enough to invest directly. VCs offer them familiar systems for due diligence and investment management, allowing more capital to flow into the ecosystem. While some see this as a risk, Lubin views it as a transitional step as Ethereum builds the tools to one day replace the traditional financial system.

He envisions a future where new, fair “on-chain investment platforms” will allow anyone to invest in projects through tokens and smart contracts, bypassing large investment firms. “Very soon better, fairer, more broadly accessible on-chain investment platforms with healthy token economics will mature sufficiently so that VCs will have no choice but to set up shop on these platforms,” Lubin stated.

Ultimately, Lubin believes this evolution will shift power from a few large investors to the people who build and support these new systems. He emphasized that Ethereum’s greatest strength remains its commitment to openness, transparency, and neutrality, which allows global collaboration without reliance on old financial institutions.