Regulators Greenlight Public Review for Groundbreaking Staked SEI ETF

The U.S. Securities and Exchange Commission (SEC) has initiated the review process for the Cboe BZX Exchange’s proposal for the first U.S.-listed Staked SEI exchange-traded fund (ETF). This formal acknowledgment, announced on September 8, 2025, marks the beginning of a public comment period, a standard procedural step before a final decision is made. The SEC’s notice confirms receipt of the application and initiates the regulatory evaluation, which typically allows for a 45-day review window, extendable by up to 240 days.

According to the filing, the proposed ETF is structured as a Delaware statutory trust and is sponsored by Canary Capital Group LLC. Cboe BZX argues that the product should be treated in the same manner as recently approved spot Bitcoin (BTC) and Ethereum (ETH) ETFs under the Securities Exchange Act. If approved, the Canary Staked SEI ETF would be the first U.S.-listed exchange-traded product to offer exposure to staked SEI tokens, a unique feature that differentiates it from traditional cryptocurrency investment vehicles.

The announcement has already driven significant market activity for the SEI token. The native coin rose more than 4% in a single day, extending its weekly gains to over 10%, with its price hovering near $0.3105. Trading volume for the token surged by 85% in the 24 hours following the SEC’s notice, signaling increased institutional and retail investor interest. Technical indicators also support a bullish outlook, with SEI trading above key moving averages and with the RSI and MACD suggesting strong buyer participation.

The staking component of the proposed ETF has also drawn attention, as it offers an innovative way to generate yield for investors while enhancing network security. Staking has become an increasingly popular mechanism in the blockchain space, and the inclusion of this feature in a U.S.-regulated ETF could set a precedent for future token-based products. Canary’s proposal is not the only one in the pipeline; asset manager 21Shares recently filed a separate S-1 registration for an SEI ETF, indicating growing confidence in the token’s market potential.

The public comment period now under way will play a crucial role in shaping the SEC’s decision. Market participants, industry experts, and the general public will have the opportunity to submit feedback on the proposal. Proponents of the ETF highlight potential benefits such as investor protection, accessibility, and transparency, while critics caution against risks including market volatility and potential manipulation. The balance of these perspectives could influence the timeline and likelihood of approval.

Analysts have noted that a breakout above $0.38 could position the SEI token for further gains, potentially reaching $0.70 under favorable market conditions. However, such a move would depend heavily on broader market sentiment and institutional adoption. With the SEC’s review now underway, the outcome could have far-reaching implications for the SEI ecosystem and the wider crypto asset market.

Source:

[1] SEI extends gains as SEC formally acknowledges Canary’s Sei ETF application (https://cryptorank.io/news/feed/96ba5-sei-extends-gains-as-sec-formally-acknowledges-canarys-sei-etf-application)

[2] SEC acknowledges filing for Canary Staked SEI ETF (https://crypto.news/sec-acknowledges-filing-for-canary-staked-sei-etf/)

[3] The US SEC confirms receipt of Canary's SEI ETF application (https://www.odaily.news/en/newsflash/447134)