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21Shares Joins the Race for SEI ETF Approval with SEC Filing

By Mini maNewcomer0 rep· 8/29/2025
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Crypto asset manager 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tracking the price of SEI, the native token of the SEI network. This move places 21Shares in a race with Canary Capital, which submitted a similar application in April. The proposed ETF aims to provide investors with direct exposure to SEI, with the potential inclusion of staking rewards.

 

Key Takeaways

  • 21Shares has filed an S-1 registration statement with the SEC for a spot SEI ETF.

  • The ETF could potentially include staking rewards for SEI tokens.

  • Coinbase Custody Trust Company is slated to be the custodian, with Coinbase acting as prime broker.

  • This filing follows a similar application by Canary Capital in April.

  • The SEC is currently reviewing multiple altcoin ETF applications.

 

The Race for the First SEI ETF

21Shares' filing marks a significant step in expanding exchange-traded access to the SEI Network. The proposed ETF will utilize CF Benchmarks to track SEI's price, aggregating data from various crypto exchanges. SEI, the native token of the SEI network, is used for network gas fees and governance. The network itself is a layer-1 blockchain designed for trading infrastructure.

 

Potential for Staking Rewards

A notable aspect of 21Shares' filing is the potential inclusion of staking rewards. The firm indicated it would explore staking SEI to generate additional returns, provided there are no significant legal, regulatory, or tax risks. This follows similar proposals for Ethereum ETFs, where the SEC has yet to grant approval for staking. The SEC's stance on certain liquid staking activities, however, has suggested a potential pathway for such features in future ETFs.

 

Broader ETF Landscape

The filing by 21Shares occurs amidst a surge of applications for altcoin-based ETFs. Other issuers are pursuing products tied to cryptocurrencies like Solana (SOL), XRP, Cardano (ADA), and even memecoins. The SEC is reportedly exploring ways to streamline the approval process for these funds, potentially through a simplified listing structure that could automate approvals if no formal objections are raised.

SEI's price has seen a recent uptick, trading around $0.30 and ranking 74th by market capitalization. The token's performance is influenced by technical upgrades, institutional adoption, and ecosystem growth, with notable holdings by Circle and consideration by the state of Wyoming for its stablecoin initiative.

 

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This article was created with support from AI-driven technology, drawing on multiple reputable sources. The final content has been thoroughly reviewed and edited by BlockzHub's editorial team to ensure accuracy, clarity, and coherence. Original reporting sources are credited whenever appropriate and as required. The opinions expressed in this article do not necessarily represent the official views or positions of BlockzHub. This article is intended for informational purposes only and should not be considered financial or professional advice. Investing involves risk, and you should consult a qualified financial advisor before making any investment decisions.

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21Shares Joins the Race for SEI ETF Approval with SEC Filing | BlockzHub