Crypto asset manager 21Shares has submitted a filing to the US Securities and Exchange Commission (SEC) to create an exchange-traded fund that would track the price of SEI, following a similar application from Canary Capital in April.
The S-1 registration statement filed with the SEC on Thursday intends to leverage crypto price index provider CF Benchmarks to follow the SEI price, utilizing data from various crypto exchanges.
SEI serves as the native token of the SEI network, which launched in August 2023. This network is a layer-1 blockchain focused on providing trading infrastructure for decentralized exchanges and marketplaces. The token can be utilized for network gas fees and governance participation.
Coinbase Custody Trust Company will serve as the custodian for SEI, and 21Shares has also considered the option of staking SEI for added returns. However, the firm noted in its filing that it continues to evaluate any potential “undue legal, regulatory or tax risk.”
Race for first SEI ETF
At present, there are no approved spot crypto ETFs in the US aside from those for Bitcoin and Ethereum, but multiple applications are in process for ETFs featuring other cryptocurrencies.
On an X post Thursday, 21Shares indicated that the ETF filing represents a “key milestone in our vision to broaden exchange-traded access to the SEI Network.”
Cointelegraph has sought further comments from 21Shares.
Currently, SEI is trading at $0.30, having increased 4.2% in the past 24 hours. CoinGecko ranks SEI at 74th by market capitalization.
Another SEI ETF has already been filed
US digital asset investment firm Canary Capital also submitted a filing for an SEI ETF back in April, which aims to “provide institutional and retail investors with direct exposure to staked SEI,” while offering “passive income via staking rewards,” according to a statement from the SEI network on April 30.
Justin Barlow, executive director of the Sei Development Foundation, commented after 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 has already launched ETFs, including the ARK 21Shares Bitcoin ETF, which tracks Bitcoin (BTC), and has filed for additional ones to track SUI (SUI), XRP (XRP), and Ondo, the token of DeFi platform Ondo Finance.
Other ETF issuers like VanEck, Bitwise, and Grayscale have submitted proposals for Solana (SOL), while various others are pursuing products linked to XRP, Cardano (ADA), and even meme coins such as Dogecoin (DOGE).
Related: Crypto ETPs face $1.4B in losses amid recent Bitcoin and Ether sell-offs
In an effort to simplify the approval process, the SEC is reportedly considering a streamlined listing structure that would automate a significant part of the procedure, as mentioned by crypto journalist Eleanor Terrett.
Terrett noted that under the proposed system, issuers would file the standard SEC form S-1 and wait 75 days. If the SEC does not formally object, the ETF would be automatically approved for listing, potentially reducing the back-and-forth communication between fund managers and the regulator.
Magazine: 3 individuals who unexpectedly became crypto millionaires… and one who didn’t
