Canary Capital Registers Staked SEI ETF Trust in Delaware

Investment manager Canary Capital has taken a significant step toward launching a staked Sei (SEI) exchange-traded fund (ETF) by registering a statutory trust in Delaware. This move is part of the firm's broader strategy to expand its offerings in the crypto-based investment products sector. The trust was officially registered on April 23 under file number 10171975, as confirmed by the official state website.

Following this registration, Canary Capital is expected to file a Form S-1 registration statement with the US Securities and Exchange Commission (SEC). This filing is a crucial step in the process of launching the ETF, as it provides detailed information about the fund's structure, investment strategies, and risks to potential investors.

Canary Capital's registration for the staked SEI ETF comes shortly after the firm filed for a staked ETF based on Tron (TRX) on April 18. The firm is also pursuing ETF registrations for several other altcoins, including XRP (XRP), indicating a broader push into the crypto investment space.

A potential Canary Staked SEI ETF would track the price of SEI, similar to conventional ETFs, but with the added benefit of staking rewards. This structure could provide investors with passive income alongside market exposure. Notably, this feature has yet to be approved for any US spot crypto ETF, making Canary Capital's initiative a pioneering effort in the industry.

The SEC has historically been cautious about staking in ETFs, as evidenced by the withdrawal of several staking ETF proposals last year. However, with a more pro-crypto administration in place, issuers are now making another attempt to gain approval for such products. Franklin Templeton submitted an S-1 in February to launch an SOL ETF with staking provisions, and the NYSE has also filed a request on behalf of Grayscale seeking approval to add staking to its spot Ethereum (ETH) ETFs.

Despite these efforts, the SEC's reluctance to greenlight such products suggests that Canary Capital's SEI ETF may face a prolonged review process. The regulator extended the decision deadline for Grayscale's spot Ethereum ETF from April 17 to July 2025, indicating a cautious approach to approving staking provisions in ETFs.

While the approval remains uncertain, the registration of the staked SEI ETF comes amid growing institutional interest in Sei. World Liberty Financial (WLFI) has accumulated 5.9 million SEI, worth around $1.1 million, fueling optimism about the potential of the DeFi project. The Sei Foundation has also been working to strengthen its presence in the US by launching the Sei Development Foundation on April 2. This initiative aims to promote the growth and visibility of the Sei protocol, providing critical support to developers and builders within its ecosystem.

Despite these developments, the SEI token has faced challenges in the market. Over the past year, the altcoin has depreciated by 70.3%, and it dipped by 3.2% over the past day. At the time of writing, SEI was trading at $0.19. In line with its price struggles, Sei’s Total Value Locked (TVL) has also experienced a decline recently. After hitting an all-time high (ATH) last week, the metric has dropped by 8.3%. At the time of writing, the TVL was at $382 million.