What did 21Shares do?
Filed an S-1 form with the SEC to register a spot ETF that would track the price of the SEI token from the Layer-1 Sei Network blockchain.
The fund proposes to use the CF SEI-Dollar Reference Rate index, which aggregates data from various exchanges to reflect the real market value.
Who is the custodian?
SEI tokens would be under the custody of Coinbase Custody Trust Company, with Coinbase also acting as prime broker.
Will staking be considered?
Yes. The prospectus indicates that 21Shares could include SEI staking dynamics to generate additional yields, as long as the legal and tax framework allows it.
Why is it relevant?
1. More spot options for altcoins
Traditionally, only spot ETFs approved for Bitcoin and Ethereum exist in the U.S. This would be one of the first products of this kind focused on an altcoin.
2. Race between emitters
21Shares joins right after Canary Capital filed its own application for a SEI ETF, marking notable competition. It also comes amid a wave of applications for ETFs of SOL, XRP, and others.
3. Institutional push for the SEI ecosystem
An ETF facilitates regulated income without the need to custody the tokens yourself, a clear gateway for institutional capital.
4. Potential in yield and access
The idea of combining exposure to the price of SEI and access to staking — if regulation allows — offers an interesting additional value for investors seeking passive returns.