Crypto Asset Manager 21Shares Files for Spot SEI ETF

Crypto asset manager 21Shares has filed with the US Securities and Exchange Commission (SEC) to launch an exchange-traded fund tracking the price of SEI, following Canary Capital’s application in April. 

The S-1 registration statement filed with the SEC on Thursday proposes to use crypto price index provider CF Benchmarks to track the price of SEI, using data from multiple crypto exchanges.

SEI is the native token of the Sei network, both were launched in August 2023. The network itself is a layer 1 blockchain that specializes in trading infrastructure for decentralized exchanges and marketplaces. Its native token can be used to pay for network gas fees and participate in governance. 

Coinbase Custody Trust Company will act as the SEI custodian, while 21Shares has also floated the possibility of staking SEI to generate additional returns. However, the firm said in the filing it’s still investigating if there will be no “undue legal, regulatory or tax risk.”

Race for first SEI ETF 

There are currently no approved spot crypto ETFs in the US outside of Bitcoin and Ethereum, although there are several applications for ETFs targeting other cryptocurrencies. 

In an X post on Thursday, 21Shares said the ETF filing was a “key milestone in our vision to expand exchange-traded access to the SEI Network.”

Cointelegraph reached out to 21Shares for further comment. 

SEI currently trades for $0.30 after rising 4.2% in the last 24 hours. CoinGecko ranks SEI in 74th place in terms of market capitalization.

Another SEI ETF has already been filed

US digital asset investment firm Canary Capital also applied for an SEI ETF in April, which would “offer institutional and retail investors direct exposure to staked SEI,” and also have “passive income via staking rewards,” according to an April 30 statement from the SEI network.