Bitcoin News Today: 21Shares Aims to Expand ETF Reach Beyond Bitcoin’s Shadow

21Shares, a leading crypto-asset manager, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking the price of the Sei Network's native token, SEI. The filing, submitted on August 28, 2025, follows a growing trend of ETF issuers targeting smaller digital assets as regulatory clarity in the U.S. crypto market appears to improve [4]. The proposed 21Shares SEI ETF aims to provide investors with exposure to SEI, which is the 74th largest cryptocurrency by market capitalization [5].

The ETF will track the CF SEI-Dollar Reference Rate – New York Variant, a benchmark provided by CF Benchmarks Ltd. The trust will aim to replicate the performance of the index, adjusted for expenses and liabilities. Additionally, the fund will consider staking SEI tokens to generate yield, contingent on regulatory and legal feasibility [6]. If approved, the fund will use Coinbase Custody Trust Company to secure SEI assets, with tokens stored in cold storage facilities to mitigate risks from hacking and theft [6].

Coinbase Custody Trust Company will also serve as the prime broker for trading activities, while Coinbase Inc. will facilitate transactions. This custodial arrangement mirrors 21Shares’ existing structure for its ONDO ETF, where tokens are similarly held in secure offline environments [6]. The firm emphasized in its filing that the trust will not actively trade SEI outside of ETF share issuance and redemption processes. Instead, large financial firms designated as authorized participants will handle the exchange of SEI for ETF shares or vice versa [6].

This move positions 21Shares as a key player in the broader ETF expansion of digital assets beyond Bitcoin and Ethereum. The firm has already launched products tracking Bitcoin and Ethereum and has filed for others targeting SUI, XRP, and Ondo Finance’s token. In a similar move, Canary Capital filed for its own SEI ETF in May, aiming to offer staking rewards for investors. The competitive landscape reflects an increasing appetite among institutional and retail investors for regulated crypto exposure [5].

The timing of 21Shares’ filing coincides with broader regulatory developments. The SEC is reportedly considering a streamlined approval process for ETFs, which could expedite the listing of new crypto products. Under the proposed system, an ETF would be approved automatically if the SEC does not raise objections within 75 days [4]. Analysts suggest that this shift could pave the way for a wave of new ETFs across various altcoins, including Solana, XRP, and Cardano. Industry experts like Krishnendu Chatterjee of A2ZCryptoInvestment anticipate approvals for XRP, Solana, and AVAX ETFs by the end of 2025, even if not by October [5].

The growing institutional interest in crypto ETFs is also reflected in the broader custody landscape. For example, BlackRock's Bitcoin and Ethereum ETFs now hold more assets than Coinbase and Binance, signaling a structural shift in how institutional investors are engaging with digital assets. This trend is further reinforced by declining inflows into traditional crypto exchanges and rising ETF accumulation, which suggests a tightening market and reduced selling pressure for both Bitcoin and Ethereum [3].

Source:

[1] 21Shares - Crypto Made Easy (https://www.21shares.com/en-us)

[2] TETH | 21Shares Core Ethereum ETF (https://www.21shares.com/en-us/products-us/teth)

[3] BlackRock Bitcoin ETF Surpasses Coinbase and Binance in Holdings (https://coincentral.com/blackrock-bitcoin-etf-surpasses-coinbase-and-binance-in-holdings/)

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

[5] 21Shares Seeks Launch of SEI ETF With Potential Staking (https://finance.yahoo.com/news/21shares-seeks-launch-sei-etf-053425300.html)

[6] Breaking: 21Shares Seeks SEC Nod to Launch First SEI ETF (https://coingape.com/21shares-seeks-sec-nod-to-launch-first-sei-etf/)