21Shares Submits Application for Spot SEI ETF as a Crypto Asset Manager

21Shares, a crypto asset management firm, has submitted an application to the US Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that will track the price of SEI. This follows a similar application by Canary Capital made in April.

The S-1 registration statement filed with the SEC on Thursday suggests utilizing the services of crypto price index provider CF Benchmarks to track SEI’s price, leveraging data from various crypto exchanges.

SEI, the native token of the Sei network, was launched in August 2023. The network operates as a layer 1 blockchain, focusing on providing trading infrastructure for decentralized exchanges and marketplaces. The token can be used for network gas fees and governance participation.

Coinbase Custody Trust Company will serve as the custodian for SEI, and 21Shares has hinted at the potential for staking SEI to yield additional returns. However, they noted in the filing that they are still evaluating whether there are any “undue legal, regulatory or tax risks.”

Race for first SEI ETF

Currently, there are no approved spot crypto ETFs in the US aside from those for Bitcoin and Ethereum, although several applications are in the pipeline targeting other cryptocurrencies.

In a post on X, 21Shares announced that the ETF application marks a significant milestone in their goal to broaden exchange-traded access to the SEI Network.

Cointelegraph has reached out to 21Shares for additional insights.

SEI is currently valued at $0.30 and has seen a 4.2% increase in the last 24 hours. CoinGecko lists SEI as the 74th largest cryptocurrency by market capitalization.

Another SEI ETF has already been filed

Digital asset investment firm Canary Capital also submitted an application for an SEI ETF in April, aimed at providing “institutional and retail investors direct exposure to staked SEI” along with “passive income via staking rewards,” as stated in a release from the SEI network on April 30.