"21Shares Aims to Bring Sei to Mainstream Markets With Staking-Enabled ETF Bid"

21Shares, a prominent crypto asset manager, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the approval of a spot ETF tracking the SEI token. This filing marks the latest development in the expanding landscape of crypto-based exchange-traded products, as the firm seeks to extend its product offerings to include exposure to the Sei blockchain. The registration, filed using the standard S-1 form, proposes to use CF Benchmarks, a provider of crypto price indices, to track the USD price of SEI based on data from multiple exchanges [1].

The SEI token is the native asset of the Sei Network, a layer 1 blockchain launched in August 2023 that focuses on decentralized exchange and marketplace infrastructure. Token holders can use SEI for gas fees and governance participation. Coinbase Custody Trust Company has been appointed as the custodian for the SEI tokens held by the ETF, and 21Shares has also indicated an interest in potentially staking the tokens to generate additional returns, provided no significant legal or regulatory risks are identified [1].

This filing follows a similar application from Canary Capital in April, which also aims to offer an SEI ETF with potential staking benefits. Justin Barlow, executive director at the Sei Development Foundation, highlighted that ETFs serve as a crucial bridge for broader adoption of cryptocurrencies in traditional markets [2]. The competitive environment for altcoin ETFs is intensifying, with other major players such as VanEck and Bitwise pursuing products tied to Solana (SOL), XRP, and Cardano (ADA), among others [2].

At the regulatory level, the SEC is reportedly exploring streamlined processes to expedite the approval of ETFs. Under the proposed framework, ETF issuers would submit their S-1 forms and, if no formal objections are raised within 75 days, the ETF would be automatically approved. This shift could reduce the back-and-forth between fund managers and regulators, potentially accelerating the introduction of new crypto ETFs to the market [1].

The SEI token has shown recent positive momentum, rising 4.2% in the last 24 hours, with a price of approximately $0.30. According to CoinGecko, it currently holds the 74th position in terms of market capitalization [1]. Institutional interest in SEI appears to be growing, with entities like Wyoming’s state-backed stablecoin initiative and Circle’s balance sheet including notable SEI holdings. The token’s future price performance may be influenced by technical upgrades, adoption trends, and further regulatory clarity around crypto products [2].

Source: [1] Crypto Asset Manager 21Shares Files for Spot SEI ETF (https://cointelegraph.com/news/21shares-files-sei-etf-sec-filing-crypto-staking) [2] 21Shares Files for Spot SEI ETF in US, May Include Staking (https://finance.yahoo.com/news/21shares-files-spot-sei-etf-052355913.html)