- 21Shares submitted an S-1 to launch a spot SEI ETF priced via CF Benchmarks’ reference rate.
- Coinbase Custody Trust is named custodian; discretionary staking is contemplated pending regulatory and tax clarity.
- Canary Capital previously filed for an SEI ETF offering exposure to staked SEI and staking rewards.
- The SEC is reportedly weighing a streamlined S-1 pathway with potential auto-approval after 75 days if no objection.
The latest move from a major crypto ETP issuer puts the Sei network’s native token squarely in the ETF spotlight, as 21Shares filed an S-1 for a spot SEI ETF with the U.S. Securities and Exchange Commission.
Born in August 2023, Sei is a layer-1 blockchain built for trading infrastructure across decentralized exchanges and marketplaces; its token powers gas fees and governance, and recently traded around $0.30 after a 4.2% daily gain, with CoinGecko placing it roughly 74th by market cap.
The push to list the first SEI ETF
Per the filing, pricing would be anchored to CF Benchmarks’ SEI-Dollar Reference Rate (New York Variant), which aggregates quotes from multiple spot venues to boost transparency and reduce dependence on any single exchange feed.
Custody for the trust is slated to be handled by Coinbase Custody Trust Company, while Coinbase, Inc. is named prime broker; the fund’s net asset value would be struck using the CF Benchmarks methodology described in the S-1.
Notably, the proposal allows for discretionary staking of SEI to generate additional returns, but only if doing so does not introduce undue legal, regulatory, or tax risk—an assessment the issuer says it is still evaluating.
In a brief update on social media, 21Shares called the filing a key milestone toward exchange-traded access to the Sei network. For now, approved spot crypto ETFs in the United States exist only for bitcoin and ether, with other assets awaiting decisions.
Canary Capital’s competing application
21Shares is not alone in chasing this market. In April, U.S. digital asset firm Canary Capital submitted its own SEI ETF application, designed to offer direct exposure to staked SEI along with passive income via staking rewards, according to an announcement shared by the Sei network.
Responding to that development, Justin Barlow of the Sei Development Foundation characterized ETFs as a bridge for broader participation, linking crypto-native assets to more traditional market rails.
Where SEI fits in the wider crypto ETF pipeline
Beyond SEI, 21Shares already offers the ARK 21Shares Bitcoin ETF and has sought approvals for additional products tied to SUI, XRP, and Ondo, the token associated with Ondo Finance.
Other issuers—VanEck, Bitwise, and Grayscale among them—have filed for Solana ETFs, while various applicants are also pursuing funds linked to XRP, Cardano, and even Dogecoin.
On the regulatory front, the SEC is reportedly exploring a streamlined listing process, per journalist Eleanor Terrett. Under that approach, an issuer would file the standard S-1 and wait 75 days; if no formal objection is posted, the ETF could be automatically cleared to list.
Such a mechanism may cut down on back-and-forth between issuers and the regulator, potentially compressing timelines while keeping core disclosure requirements intact.
As context, 21Shares is a crypto-native ETP provider that launched HODL, the first physically backed crypto ETP on the SIX Swiss Exchange; by late 2024 it had 44 listed products across multiple currencies and now operates under the 21.co umbrella.
Whether a spot SEI ETF reaches U.S. markets will come down to the SEC’s review of pricing, custody, and optional staking mechanics—plus investor appetite. For now, SEI trades near $0.30 after a 24-hour rise of 4.2%, and it sits in the mid-70s by market capitalization on CoinGecko’s rankings.
