XRP News Today: Regulators Face Crucial Choice as Altcoin ETFs Proliferate

21Shares, a leading crypto asset manager, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) focused on SEI, the native token of the Sei blockchain. The proposed ETF aims to provide institutional and retail investors with a regulated vehicle to gain exposure to SEI without directly holding the token. This move follows similar applications from firms like Canary Capital, which filed in April for an SEI-based ETF with staking capabilities [1]. The ETF structure is designed to mirror the price of SEI using an index calculated by CF Benchmarks Ltd., aggregating data from major exchanges to reflect the token’s market value [2]. The filing also outlines the potential for staking SEI within the fund to generate yield, though 21Shares emphasizes that no final decisions have been made and that any staking would require thorough legal and regulatory review [3].

Coinbase Custody Trust Company has been designated as the custodian for the SEI tokens held in the proposed ETF, ensuring secure storage and management of assets. CSC Delaware Trust Company will serve as the trustee, overseeing the fund’s compliance and operational integrity [2]. The submission marks a significant step in 21Shares’ strategy to expand regulated access to alternative crypto assets, particularly as the U.S. market remains open to applications for altcoin ETFs beyond the approved Bitcoin and Ethereum products [3]. Analysts have noted growing interest in such vehicles, with multiple issuers submitting applications for ETFs tracking assets like Solana, XRP, and Cardano, indicating a broader push to integrate crypto into traditional financial markets [3].

The price of SEI has shown mixed performance in recent days, trading around $0.3014 with a 2% increase over the past 24 hours. Market analysts have observed that the token is consolidating within a symmetrical triangle pattern, suggesting a period of stability before a potential breakout [1]. If the price moves above this pattern, it could target levels between $0.36 and $0.50. Conversely, a breakdown below $0.285 could trigger downward pressure, testing key support levels that have historically attracted accumulation activity [4]. The token currently ranks 74th in market capitalization according to CoinGecko, highlighting its position within the broader crypto ecosystem [2].

The filing of the SEI ETF application coincides with broader regulatory developments in the crypto space. The SEC is reportedly considering a streamlined approval process that would allow for automatic ETF listings if no objections are raised within 75 days of the S-1 filing. This proposed change could expedite the approval timeline for products like the 21Shares SEI ETF and others in the pipeline [3]. Industry experts, including Krishnendu Chatterjee of A2ZCryptoInvestment, have expressed optimism about the likelihood of approvals for altcoin ETFs, especially in a more crypto-friendly regulatory environment. Chatterjee anticipates that XRP, Solana, and other major altcoins could see ETF approvals by the end of the year [3].

21Shares has already launched a Bitcoin ETF and has additional applications pending for tokens such as SUI, XRP, and Ondo, reflecting its strategy to diversify its crypto product offerings. With the current regulatory landscape showing signs of evolution, the proposed SEI ETF represents another step toward mainstream adoption of digital assets through institutional-grade investment vehicles. If approved, the fund could provide investors with a regulated, liquid, and transparent way to participate in the growth of the Sei blockchain, which focuses on decentralized trading infrastructure [2]. The potential inclusion of staking within the ETF structure could further differentiate the product by offering passive income opportunities, a feature that has been increasingly sought after in the crypto market [1].

Source: [1] 21Shares Seeks SEC Approval for SEI ETF, Eyes Staking ... (https://www.cointribune.com/en/21shares-seeks-sec-approval-for-sei-etf-eyes-staking-potential/) [2] Crypto Asset Manager 21Shares Files for Spot SEI ETF (https://cointelegraph.com/news/21shares-files-sei-etf-sec-filing-crypto-staking) [3] 21Shares Seeks Launch of SEI ETF With Potential Staking ... (https://finance.yahoo.com/news/21shares-seeks-launch-sei-etf-053425300.html) [4] SEI Price Nears Critical Support Level, Signaling Potential ... (https://bravenewcoin.com/insights/sei-price-nears-critical-support-level-signaling-potential-rally-to-5)