Crypto asset management firm 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that tracks the price of SEI, following a similar application submitted by Canary Capital in April.
The S-1 registration statement submitted to the SEC on Thursday proposed using cryptocurrency price index provider CF Benchmarks to track the price of SEI, with data sourced from multiple crypto exchanges.
SEI is the native token of the Sei network, both of which launched in August 2023. The network is a layer 1 blockchain focused on decentralized exchanges and markets. Its tokens can be used to pay network fees and participate in governance.
Coinbase Custody Trust Company will act as the custodian for SEI, and 21Shares is also exploring the possibility of earning additional returns through staking SEI. However, the company stated that it is still studying whether this would pose undue legal, regulatory, or tax risks.
Competing for the first SEI ETF.
Currently in the U.S., besides Bitcoin and Ethereum, no other cryptocurrency spot ETFs have been approved. However, several cryptocurrency ETF applications are in progress.
21Shares stated in a post on X on Thursday that the ETF application is an important milestone in bringing the SEI network to exchanges.
The current price of SEI is $0.30, up 4.2% in the past 24 hours. According to CoinGecko data, its market cap ranks 74th.
Another company has also submitted an application for an SEI ETF.
American digital asset investment firm Canary Capital also applied to launch an SEI ETF in April, providing institutional and individual investors direct access to staked SEI and passive income through staking.
Justin Barlow, executive director of the Sei Development Foundation, said that ETFs are a portal for broader adoption, providing a critical bridge between the crypto market and the mainstream market.
A wave of ETF applications is on the horizon.
21Shares already has several ETFs, including the ARK 21Shares Bitcoin ETF, which tracks the price of Bitcoin, as well as ETFs for SUI, XRP, and Ondo that are under application. Other issuers like VanEck, Bitwise, and Grayscale have also submitted ETF applications related to Solana, XRP, Cardano, and even Dogecoin.
To simplify the approval process, the SEC is exploring a streamlined listing structure that could automate much of the approval process.
