21Shares, a Swiss-based cryptocurrency investment firm, has submitted an S-1 registration with the SEC to launch the 21Shares SEI ETF, a passive fund designed to track the CF SEI-Dollar Index. Should regulatory circumstances allow, the fund may potentially incorporate staking rewards.
In the short term, SEI’s price has reacted positively, with technical sentiment indicating a rebound from support levels.
Fund Will Provide SEI’s Staking Rewards
As outlined in the SEC Filing S-1, the 21Shares SEI (SEI) ETF aims to passively track the CF SEI-Dollar Reference Rate (New York Variant) from CF Benchmarks. The ETF will not employ leverage or derivatives; its creation/redemption process can be conducted through cash or in-kind transactions. Coinbase Custody has been designated as the custodian for SEI.
A significant aspect is that the fund may represent rewards from staking a portion of SEI. This is contingent upon the sponsor assessing that there are no legal or tax risks, including consideration of utilizing LSTs to maintain grantor trust status. Essentially, the “staking” feature is optional and hinges on regulatory approval.
Importantly, the SEC has consistently postponed decisions surrounding staking features in Grayscale’s spot ETH funds, with a final deadline anticipated in October 2025. This implies that any altcoin ETF attempting to include staking “yields” will likely encounter similar stringent evaluations. Thus, while 21Shares has proposed the staking option on paper, the likelihood of its inclusion at listing is minimal unless further guidance from the SEC is provided.
Earlier, CBOE submitted the Canary Staked SEI ETF 19b-4 to the U.S. SEC. The SEC has delayed 21Shares’ XRP ETF filing despite an uptick in optimism regarding regulatory advancements and recent market enthusiasm.
SEI Price Rises 3.33%
As of this writing, SEI is trading at approximately $0.30, reflecting a 3.33% increase for the day. Its market cap stands at around $1.82 billion, with a 24-hour trading volume exceeding $210 million. This size is adequate for a specialized ETF to attract further institutional investments, favoring assets structured in listed formats.
From a technical analysis standpoint, experts on X indicate that SEI has rebounded from a vital support region coinciding with the lower boundary of a triangle/“bullish pennant” pattern, targeting reference points around $0.345 and potentially reaching $0.60 if a significant breakout occurs.
“SEI bounced back from a crucial support level and is likely to finish the week strongly.” Michaël van de Poppe commented
Additional insights indicate that SEI is consolidating above the $0.29 threshold, which suggests the potential to sustain a bullish structure. However, this remains a target scenario rather than a certainty; prices may vary significantly before establishing a clear trend. Investors are advised to incorporate risk management tailored to invalidation levels rather than simply reacting to headlines.
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