Crypto asset manager 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to SEI, the native token of the Sei blockchain. The filing was made on AUG.28 through an S-1 registration statement. An ETF is a financial product that allows investors to track the price of an asset — in this case, SEI — without buying or holding it directly.
The proposed 21Shares Sei ETF would track SEI’s price using data from multiple exchanges provided by CF Benchmarks. Coinbase Custody Trust Company has been appointed as custodian, while Coinbase Inc. will act as prime broker.
21Shares also raised the possibility of staking SEI to generate additional yield. However, the firm noted in its filing that it is still reviewing whether staking would create “undue legal, regulatory or tax risk.” The SEC has never approved an ETF with staking features, despite similar requests from Grayscale, BlackRock, and 21Shares for their Ethereum funds.
Canary Capital Filed First, But SEC Yet to Approve Any Altcoin ETF
21Shares’ application follows Canary Capital’s SEI ETF filing in April 2025, which proposed offering direct exposure to staked SEI and rewarding investors with staking income. At that time, Justin Barlow, executive director at the Sei Development Foundation, called ETFs a “gateway for broader adoption, providing a vital bridge between crypto and mainstream markets.”
While Canary filed first, ETF history suggests that approval often happens in batches rather than on a first-come-first-serve basis. The SEC approved multiple Bitcoin and Ethereum ETFs together earlier this year, indicating that timing may matter more than who applied first.
SEI, which launched in August 2023, is a layer-1 blockchain optimized for trading infrastructure. Users pay gas fees and participate in governance with its native token. The SEI token currently trades near $0.30, up 1.2% in the past 24 hours. It is ranked 74th by market capitalization, but remains down nearly 74% from its March 2024 all-time high of $1.14.
SEC Reviews Multiple Applications
The SEC has so far only approved spot ETFs for Bitcoin (BTC) and Ethereum (ETH). Applications for altcoin ETFs, including those tied to Solana (SOL), XRP, Cardano (ADA), and Dogecoin (DOGE), remain under review. 21Shares itself has also filed for ETFs tracking SUI, XRP, and Ondo (ONDO).
Industry observers say the question of staking could delay approvals. Nate Geraci, president of ETF consultancy ETF Store, said earlier this month that the SEC is “closer than ever to making a ruling” on staking. This was after regulators clarified that some blockchain staking activities do not count as securities offerings. But until the SEC makes a formal decision, staking ETFs remain uncertain.
Journalist Eleanor Terrett reported that the SEC may adopt a streamlined approval process. Under this system, the SEC would approve ETF applications automatically after 75 days unless it raises an objection. This could reduce delays and make it easier for funds like the SEI ETF to move forward.
