21Shares Submits Application for Spot SEI Exchange-Traded Fund (ETF)

Crypto asset manager 21Shares has submitted a filing with the US Securities and Exchange Commission (SEC) to create an exchange-traded fund (ETF) that tracks the price of SEI, following Canary Capital’s application in April.

The S-1 registration statement filed with the SEC on Thursday intends to utilize crypto price index provider CF Benchmarks to track the price of SEI, drawing 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 designed for trading infrastructure for decentralized exchanges and marketplaces. Its native token can be employed to cover network gas fees and engage in governance.

Coinbase Custody Trust Company will serve as the SEI custodian, and 21Shares has also suggested the potential for staking SEI to earn additional returns. However, the firm noted in the filing that it continues to assess any possible “undue legal, regulatory or tax risk.”

Race for first SEI ETF

Presently, there are no approved spot crypto ETFs in the US apart from Bitcoin and Ethereum, although multiple applications for ETFs focused on other cryptocurrencies exist.

In an X post on Thursday, 21Shares announced that the ETF filing represents a “key milestone in our effort to broaden exchange-traded access to the SEI Network.”

Cointelegraph reached out to 21Shares for additional commentary.

Currently, SEI is trading at $0.30 after a 4.2% increase within the past 24 hours. CoinGecko ranks SEI at 74th in market capitalization.

Another SEI ETF has already been filed

US digital asset investment firm Canary Capital also submitted an application for an SEI ETF in April, which is designed to “offer institutional and retail investors direct exposure to staked SEI,” and also provide “passive income via staking rewards,” according to a statement from the SEI network on April 30.