"21Shares Aims to Bring SEI to Mainstream Portfolios With New ETF Push"

21Shares, a leading crypto asset manager, has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed SEI exchange-traded fund (ETF). The new fund aims to track the price of SEI, the native token of the Sei blockchain, a Layer 1 network designed for high-speed trading and decentralized exchange applications. The filing outlines that the fund will hold SEI in custody with Coinbase Trust, while Coinbase Inc. will serve as the prime broker for trading activities. The SEI ETF could also incorporate staking to generate additional yield, although 21Shares has not yet finalized this approach due to ongoing legal and regulatory considerations [1].

The proposed 21Shares SEI ETF will be structured as a passive fund, tracking the CF SEI-Dollar Reference Rate, which aggregates data from multiple cryptocurrency exchanges to reflect the token’s market price. The firm emphasized that the fund will not use leverage or derivatives, aligning with a broader trend of simplifying exposure to digital assets for both institutional and retail investors. This move is part of 21Shares' ongoing strategy to expand its range of crypto ETFs, having previously launched products tied to Bitcoin and Ethereum and filed for others targeting tokens such as SUI and XRP [2].

The Sei Network, launched in August 2023, positions itself as a blockchain optimized for trading infrastructure, with SEI used for paying gas fees, participating in governance, and staking. As of the filing, SEI is trading at $0.30, having risen 4.2% over the past 24 hours, according to CoinGecko, which ranks the token 74th by market capitalization. The introduction of a publicly traded SEI ETF could enhance the token’s liquidity and attract a broader investor base, particularly under a crypto-friendly regulatory environment [3].

Competition in the space is intensifying, with Canary Capital having filed its own SEI ETF application in May. That proposal also includes a focus on staking rewards and direct exposure to SEI. Industry analysts, such as Krishnendu Chatterjee of A2ZCryptoInvestment, have expressed optimism about the likelihood of approvals, citing regulatory signals and the precedent set by Bitcoin and Ethereum ETF launches in early 2024. Chatterjee noted that XRP, Solana, and other altcoins could follow a similar path, with several ETF applications expected to be reviewed by the SEC by the end of the year [1].

The SEC’s approach to reviewing these applications appears to be evolving. The agency has reportedly been considering a streamlined approval process that could reduce the back-and-forth between regulators and fund managers. Under this proposed structure, issuers would submit an S-1 form and wait 75 days for a formal objection. If none is raised, the ETF would be approved for listing. This shift could expedite the approval timeline for the 21Shares SEI ETF and other crypto-linked funds, particularly as the SEC continues to navigate a growing number of applications across different digital assets [3].

Source:

[1] 21Shares Seeks Launch of SEI ETF With Potential Staking (https://finance.yahoo.com/news/21shares-seeks-launch-sei-etf-053425300.html)

[2] 21Shares pushes into altcoin ETFs with new SEI filing (https://cryptobriefing.com/21shares-files-s-1-for-new-sei-etf/)

[3] Crypto Asset Manager 21Shares Files for Spot SEI ETF (https://cointelegraph.com/news/21shares-files-sei-etf-sec-filing-crypto-staking)