21Shares, a crypto asset manager, has submitted a filing to the US Securities and Exchange Commission (SEC) to initiate an exchange-traded fund (ETF) that tracks the price of SEI, following an earlier application by Canary Capital in April.
The S-1 registration statement submitted to the SEC on Thursday outlines the intention to employ CF Benchmarks, a crypto price index provider, for tracking SEI prices with data gathered from various crypto exchanges.
SEI serves as the native token of the Sei network, which was launched in August 2023. This network functions as a layer 1 blockchain, focusing on trading infrastructure for decentralized exchanges and marketplaces. The token can be utilized for network gas fees and governance participation.
Coinbase Custody Trust Company is designated as the custodian for SEI, and 21Shares has expressed interest in staking SEI for potential additional returns. However, they are conducting further assessments to ensure there are no “undue legal, regulatory, or tax risks.”
Race for first SEI ETF
Currently, there are no approved spot crypto ETFs in the US for cryptocurrencies other than Bitcoin and Ethereum, although there are numerous applications for ETFs related to other digital assets.
In a post on X, 21Shares stated that this ETF application marks a “key milestone in our efforts to broaden exchange-traded access to the SEI Network.”
Cointelegraph has reached out to 21Shares for additional comments.
Source: 21Shares US
SEI is currently priced at $0.30, having increased by 4.2% in the last 24 hours. CoinGecko positions SEI at 74th in terms of market capitalization.
Another SEI ETF has already been filed
Canary Capital, a US digital asset investment firm, also made an application for an SEI ETF in April, aiming to “provide institutional and retail investors with direct exposure to staked SEI,” which would allow for “passive income through staking rewards,” per a statement from the SEI network dated April 30.
Following Canary Capital’s filing, Justin Barlow, executive director at the Sei Development Foundation, remarked that ETFs are “a gateway for broader adoption, serving as a crucial bridge between cryptocurrency and mainstream markets.”
A flood of other ETF applications waiting in the wings
21Shares has existing ETFs available, including the ARK 21Shares Bitcoin ETF that tracks Bitcoin (BTC), along with other applications for ETFs tracking SUI (SUI), XRP (XRP), and Ondo, the token associated with the DeFi platform Ondo Finance.
Other ETF issuers such as VanEck, Bitwise, and Grayscale have filed for Solana (SOL) ETFs, while additional issuers are pursuing products related to XRP, Cardano (ADA), and even meme coins like Dogecoin (DOGE).
Related: Crypto ETPs face $1.4B losses amid recent Bitcoin and Ether sell-offs
In an initiative to expedite the approval process, the SEC is reportedly contemplating a simplified listing structure that would automate much of the approval procedure, as noted by crypto journalist Eleanor Terrett.
Terrett mentioned that under this new framework, issuers would be required to submit the standard SEC form S-1, after which they’d wait 75 days. If the SEC offers no formal objection, the ETF would be automatically cleared for listing, likely minimizing back-and-forth interaction between fund managers and the regulator.
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