SEI is the native token of the Sei network, which is a Layer 1 blockchain specifically designed for trading infrastructure for decentralized exchanges and markets.

Following Canary Capital's application in April, cryptocurrency asset management company 21Shares has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund tracking the price of SEI.

The S-1 registration statement submitted to the U.S. Securities and Exchange Commission on Thursday proposed using cryptocurrency price index provider CF Benchmarks to track the price of SEI, utilizing data from multiple cryptocurrency exchanges.

SEI is the native token of the Sei network, both of which launched in August 2023. The network itself is a Layer 1 blockchain built specifically for trading infrastructure for decentralized exchanges and markets. Its native token can be used to pay network gas fees and participate in governance.

Coinbase Custody Trust Company will act as the custodian for SEI, while 21Shares has also proposed the possibility of staking SEI for additional returns. However, the company stated that it is still investigating whether there are 'excessive legal, regulatory, or tax risks.'

Competing for the first SEI ETF

Currently, there are no approved spot cryptocurrency ETFs in the U.S. besides Bitcoin and Ethereum, although several applications for ETFs on other cryptocurrencies have been made.

21Shares stated in a post on X on Thursday that the ETF application is 'a key milestone in our vision to expand access to the SEI network through exchange-traded products.'

Cointelegraph contacted 21Shares for further comments.

The current price of SEI is $0.30, up 4.2% in the last 24 hours. CoinGecko ranks SEI's market capitalization at 74th.

Another SEI ETF has submitted an application

According to a statement from the SEI network on April 30, the U.S. digital asset investment firm Canary Capital also applied for an SEI ETF in April, which will 'provide direct investment opportunities in SEI staking for institutional and retail investors' and 'generate passive income through staking rewards.'

Justin Barlow, executive director of the Sei Development Foundation, stated after Canary Capital submitted its documents that the ETF is 'a gateway for broader adoption, bridging an important gap between cryptocurrency and mainstream markets.'

A large number of other ETF applications are pending

21Shares has launched an ETF in the market, including the ARK 21Shares Bitcoin ETF, to track the price of Bitcoin and has applied for others to track SUI, Ripple, and the DeFi platform Ondo Finance's token, Ondo.

Other ETF issuers like VanEck, Bitwise, and Grayscale have submitted applications for Solana, while other issuers are launching products related to XRP, Cardano, and even meme coins like Dogecoin.

According to cryptocurrency journalist Eleanor Terrett, to streamline the approval process, the U.S. Securities and Exchange Commission (SEC) is exploring a simplified listing structure to automate most of the approval process.

Terrett stated that under the new system, issuers will submit a standard SEC S-1 form and wait 75 days. If the SEC does not raise formal objections, the ETF will automatically receive listing approval, which may reduce back-and-forth communication between fund managers and regulators.