21Shares Files for Spot SEI ETF in US, May Include Staking

Crypto asset manager 21Shares has filed an S-1 registration with the US SEC for spot SEI exchange-traded funds (ETFs). The firm follows Canary Capital’s similar filing in April.

Per the registration submitted Thursday, the 21Shares SEI ETF, if approved, would track the CF SEI-Dollar Reference Rate in USD. Further, the company stated that it may engage in staking if tax status permits.

The proposed product aims to “reflect rewards from staking a portion” of the ETF’s SEI tokens “without undue legal or regulatory risk.”

The filing comes at a time when the US regulatory agency is keen on reviewing several altcoin ETF applications. Among other crypto ETF filings, funds tracking the price of XRP have gained momentum, particularly after the token has long been at the center of legal and regulatory debates.

The filing has named Coinbase Custody Trust Company as the ETF’s custodian, with Coinbase acting as prime broker.

SEC’s Recent Crypto ETF Delays Are Possibly Not Denials

Following several delays, the SEC is expected to issue decisions on several pending applications in October, including products tied to Trump Media and Solana (SOL).

Altcoin ETF issuers are pressing forward with new amendments, hoping that October deadlines could be a turning point for the crypto ETF landscape.

The SEC recently delayed decisions on the approval of Truth Social’s Bitcoin and Ethereum ETF, besides XRP and Litecoin funds. The US watchdog has marked Oct. 8 as its next deadline for both Truth Social’s crypto ETF products.

Nate Geraci, president of NovaDius Wealth, wrote on X, “crypto ETF floodgates about to open soon.”

“Pretty soon there will be more crypto ETF filings than stocks,” said Bloomberg Intelligence senior ETF analyst Eric Balchunas.

SEI Token Surges Past 4% – Will it Go Further?

Following the 21Shares’ spot SEI ETF filing, the native token rose 4.06% in the past 24 hours. The move signals bullish chart structure after a 60% 90-day gain.

Parallelly, SEI’s TVL hit $682 million with DeFi protocols like Dragonswap driving usage. The surge is also attributed to the recent institutional adoption drive.

Circle’s IPO filing reveals that by the end of 2024, the company held 6.25 million SEI tokens. The holdings make the most significant token on its balance sheet compared to other crypto. Besides, the state of Wyoming shortlisted SEI for its state-backed stablecoin (WYST).

SEI is seen trading at $0.302 at press time, per CoinMarketCap data. The token’s price trajectory hinges on technical upgrades, institutional adoption, and ecosystem growth.

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