Yes, the Yardbirds actually covered the Velvet Underground
I can only image that the collective dreaming of an ardent subset of record nerds actually willed this thing into existence.
Thanks to the ever magical Aquarium Drunkard website, please enjoy this bootleg—here— of the Yardbirds SMASHING their way through VU's "I'm Waiting for the Man" at the Shrine Auditorium in LA, 1968.
As they write at AQ, Jimmy Page and his bandmates replace the cramped and uptight feel of the original with "their patented rave up groove," something that I'm sure would have met with a withering display of "encouragement" from Lou Reed if he heard it.
The quality also isn't great, but come on—it's not like the original was a model of high fidelity.