21Shares Files With SEC for Spot SEI ETF

Crypto asset manager 21Shares has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for the launch of a spot SEI exchange-traded fund (ETF). If approved, the product would be among the first U.S.-based ETFs to provide direct exposure to SEI, the native token of the SEI blockchain.

The filing, submitted on Thursday, outlines that the ETF would track the CF SEI-Dollar Reference Rate, an index priced in U.S. dollars and maintained by crypto benchmark provider CF Benchmarks. Coinbase Custody Trust Company is listed as the custodian for the fund.

This is the second filing for a SEI ETF this year, following a similar application from Canary Capital in April.

What the SEI ETF Would Do

According to the filing, the proposed 21Shares SEI ETF is designed to reflect the performance of SEI’s spot market. The structure is straightforward:

• Tracking index: CF SEI-Dollar Reference Rate
• Custodian: Coinbase Custody Trust Company
• Exposure method: Direct holdings of SEI tokens

The company also noted that it may engage in staking, provided that doing so does not create “undue legal, regulatory, or tax risk.” If implemented, this would allow the ETF to distribute staking rewards to shareholders in addition to price exposure.

In its registration, 21Shares emphasized that the ETF is intended to provide secure and regulated access to SEI without requiring investors to directly hold or manage tokens.

Why SEI Matters

SEI is the native asset of the SEI Network, a layer-1 blockchain that launched in August 2023. Unlike general-purpose blockchains, SEI was built specifically for trading infrastructure and decentralized finance (DeFi) markets.

Key functions of SEI include:

• Gas fees: Used to pay for transactions on the network
• Governance: Holders can vote on protocol changes
• Staking: Secures the network and provides yield opportunities

The SEI ecosystem has grown rapidly. As of this week, its total value locked (TVL) reached $1.2 billion, supported by DeFi protocols such as Dragonswap. SEI’s token price recently stood at $0.30, with CoinGecko ranking it 53rd by market capitalization.

The SEC and the Altcoin ETF Race

The filing arrives during an active period for the SEC, which is reviewing multiple ETF applications tied to cryptocurrencies beyond Bitcoin and Ethereum. While spot ETFs for those two assets were approved earlier, the regulator has not yet signed off on ETFs tracking other tokens.

Currently, filings include funds tied to:

• Solana (SOL): VanEck, Grayscale, and Bitwise
• XRP: Several issuers, following regulatory clarity after its court case
• Other altcoins: Cardano, Dogecoin, HBAR, Litecoin

The SEC has deadlines in October for several pending decisions, including products tied to Solana and Trump Media’s proposed ETFs. Analysts such as Bloomberg’s Eric Balchunas suggest that approval odds are rising, pointing to what he called a potential “floodgate” moment for crypto ETFs.

Canary Capital Filed First

While 21Shares is now the latest entrant, Canary Capital was the first to submit an application for a SEI ETF in April. Its proposal included direct exposure to staked SEI, with rewards passed on to investors.

The race between Canary Capital and 21Shares now mirrors the broader competition among asset managers to bring new altcoin ETFs to the U.S. market. Whoever secures approval first could establish an early advantage in attracting institutional and retail capital.

The network’s growth has also attracted institutional attention. Circle disclosed in its IPO filing that it held 6.25 million SEI tokens by the end of 2024—the largest crypto balance on its books. Meanwhile, Wyoming has shortlisted SEI for its planned state-backed stablecoin (WYST).

Conclusion

The 21Shares SEI ETF filing reflects a growing appetite for altcoin ETFs in the United States. By tracking the CF SEI-Dollar Reference Rate and potentially incorporating staking, the product would provide investors with a regulated way to access SEI without managing wallets or private keys.

While approval remains uncertain, the filing underscores SEI’s role as a specialized blockchain for decentralized trading infrastructure and highlights the continued push by asset managers to broaden the crypto ETF landscape.

Resources:

1. 21 Shares’ filing with the SEC: https://www.sec.gov/Archives/edgar/data/2061623/000121390025081796/ea0254933-s1_21shares.htm#a_009

2. Sei Network TVL data: https://defillama.com/chain/sei

3. SEI price action: https://coinmarketcap.com/currencies/sei/