Crypto investment firm 21Shares has officially submitted an application to the US Securities and Exchange Commission (SEC) seeking approval for a spot exchange-traded fund (ETF) tied to the performance of SEI, joining an ongoing race that already includes Canary Capital, which filed a similar request earlier this year.
According to the S-1 registration form submitted on Thursday, the fund would rely on CF Benchmarks—a crypto price index provider owned by Kraken—to track SEI’s market price based on aggregated data from multiple trading platforms.
SEI, launched in August 2023, powers the SEI Network, a layer-1 blockchain designed specifically to enhance trading and liquidity infrastructure for decentralized exchanges and marketplaces. Its token serves as both a utility for transaction fees and a governance tool for protocol decisions.
As outlined in the filing, Coinbase Custody Trust Company would act as the custodian of SEI holdings. 21Shares also indicated it may consider staking SEI to provide additional yield, though it cautioned that legal, regulatory, and tax implications are still under review.
The Push for the First SEI ETF
At present, only Bitcoin and Ethereum have spot ETFs trading in the US, but filings for other crypto assets have been piling up. In its announcement on X (formerly Twitter), 21Shares described the submission as “a significant step toward expanding access to the SEI Network via regulated investment products.”
Currently, SEI is trading around $0.30, marking a 4.2% increase over the past 24 hours, and is ranked 74th in market capitalization by CoinGecko.
Canary Capital’s Early Entry
Canary Capital, a US-based digital asset manager, made the first move back in April 2025, applying for an ETF that would provide direct exposure to staked SEI and generate passive returns through staking rewards. Following the announcement, Justin Barlow, executive director at the Sei Development Foundation, highlighted the importance of such products, calling ETFs “a bridge between digital assets and traditional financial markets.”
Broader ETF Competition in the Crypto Space
21Shares already offers a number of ETFs, including the ARK 21Shares Bitcoin ETF, and has filed for additional products tied to SUI, XRP, and Ondo. Meanwhile, other major issuers such as VanEck, Bitwise, and Grayscale are racing to secure approval for ETFs tracking Solana, Cardano, XRP, and even Dogecoin.
The SEC, facing a wave of filings, is reportedly considering a new fast-track framework that could streamline approvals. Under this approach, fund issuers would submit an S-1 form and, after a 75-day waiting period, the product could automatically gain approval unless the SEC raises objections. This would reduce lengthy negotiations between issuers and regulators and potentially accelerate the rollout of new crypto ETFs.
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