21Shares files to launch SEI ETF, joining race with Canary Capital

Crypto asset manager 21Shares has filed with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund tracking the price of SEI, following Canary Capital’s application in April. 

The S-1 registration statement with the SEC on Thursday proposes to use crypto price index provider CF Benchmarks to track the price of SEI, using data from .

SEI is the native token of the Sei network, both were launched in August 2023. The network itself is a layer 1 blockchain that specializes in trading infrastructure for decentralized exchanges and marketplaces. Its native token can be used to pay for network gas fees and participate in governance. 

Coinbase Custody Trust Company will act as the SEI custodian, while 21Shares has also floated the to generate additional returns. However, the firm said in the filing it’s still investigating if there will be no “undue legal, regulatory or tax risk.”

Race for first SEI ETF 

There are currently no approved spot crypto ETFs in the US outside of Bitcoin and Ethereum, although there are several applications for ETFs targeting other cryptocurrencies. 

In an X post on Thursday, 21Shares the ETF filing was a “key milestone in our vision to expand exchange-traded access to the SEI Network.”

Cointelegraph reached out to 21Shares for further comment. 

SEI currently trades for $0.30 after rising 4.2% in the last 24 hours. CoinGecko SEI in 74th place in terms of market capitalization.

Another SEI ETF has already been filed

US digital asset investment firm Canary Capital also applied for an SEI ETF in April, which would “offer institutional and retail investors direct exposure to staked SEI,” and also have “passive income via staking rewards,” to an April 30 statement from the SEI network.

Justin Barlow, executive director at the Sei Development Foundation, said in a statement following Canary Capital’s filing that ETFs are “a gateway for broader adoption, providing a vital bridge between crypto and mainstream markets.”

A flood of other ETF applications waiting in the wings

21Shares already has ETFs on the market, including the ARK 21Shares Bitcoin ETF, which tracks the price of Bitcoin (), and has applied for others to track SUI (), XRP () and Ondo, the .

Other ETF issuers such as VanEck, Bitwise, and for Solana (), while other issuers are pursuing products tied to XRP, Cardano () and even memecoins like Dogecoin ().

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In an effort to streamline the approval process, the SEC is reportedly exploring a simplified listing structure that would automate a significant portion of the approval process, .

Terrett said under the new system, issuers would submit the standard SEC form S-1 and wait for 75 days. If the SEC doesn’t post a formal objection, the ETF is automatically approved for listing, possibly reducing the between fund managers and the regulator.

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