Simply put
- 21Shares has filed with the SEC for SEI ETFs intended to track SEI blockchain tokens and the potential for staking rewards that could yield extra profits.
- The applications form part of a series of Altcoin ETF filings, as fund managers aim to include smaller digital assets, moving beyond just Bitcoin and Ethereum.
- A similar SEI ETF application was submitted by Canary Capital in May.
Asset management firm 21Shares has made a filing with the Securities and Exchange Commission to create an exchange-traded fund (ETF) that would track the native tokens of the SEI blockchain.
This proposed SEI ETF from 21Shares aims not only to provide exposure to SEI but also to explore additional yield opportunities through staking rewards. The registration statement was submitted on Thursday.
Following the successful launch of Spot Bitcoin and Ethereum ETFs in 2024, fund managers are now shifting their focus to smaller digital assets like Solana, Dogecoin, and XRP, among others, especially amidst a crypto-friendly regulatory environment.
The primary objective of the trust is to “track the performance of SEI,” with a secondary aim of generating “rewards from staking some of the Trust’s SEIs.”
“I believe the 21Shares SEI ETFs will likely get approved and will sit alongside Bitcoin and Ethereum ETFs,” commented Krishnendu Chatterjee, CEO and co-founder of A2ZCryptoInvestment.
He went on to say, “This 21Shares SEI ETF represents a significant step toward broader applications for regulated ALT investments, including staking benefits.”
However, the prospectus indicates that 21Shares has not yet determined if staking can be offered under a public trust structure.
The filing notes that Coinbase Custody Trust Company will serve as the primary custodian for SEI Holdings, while Coinbase Inc. will handle trading activities.
This development adds to the initiative from Canary Capital, which also submitted a SEI ETF application in May, sharing similar staking objectives.
Numerous crypto ETF applications are expected to face decisions from the SEC in October, with regulators currently extending the review period for these submissions, including the Spot XRP Fund and a Solana ETF proposal.
Industry experts are generally optimistic, anticipating batches of approvals starting in October based on established criteria.
Chatterjee expressed, “ETFs are set to provide institutional exposure to this new asset class, becoming a new normal. I think XRP, Solana, and Avax ETFs might get approved by the end of the year, possibly after October.”
At the moment, SEI ranks as the 74th largest cryptocurrency, with a market cap nearing $1.82 billion.
The token has been trading around $0.30 recently, but that’s down about 73.7% from its all-time high of $1.14 reached in March 2024.
