Crypto asset supervisor 21Shares has filed with the US Securities and Alternate Fee (SEC) to launch an exchange-traded fund monitoring the worth of SEI, following Canary Capital’s utility in April.
The S-1 registration assertion filed with the SEC on Thursday proposes to make use of crypto value index supplier CF Benchmarks to trace the worth of SEI, utilizing knowledge from a number of crypto exchanges.
SEI is the native token of the Sei community, each have been launched in August 2023. The community itself is a layer 1 blockchain that focuses on buying and selling infrastructure for decentralized exchanges and marketplaces. Its native token can be utilized to pay for community gasoline charges and take part in governance.
Coinbase Custody Belief Firm will act because the SEI custodian, whereas 21Shares has additionally floated the potential for staking SEI to generate extra returns. Nonetheless, the agency stated within the submitting it’s nonetheless investigating if there can be no “undue authorized, regulatory or tax danger.”
Race for first SEI ETF
There are presently no authorized spot crypto ETFs within the US exterior of Bitcoin and Ethereum, though there are a number of functions for ETFs concentrating on different cryptocurrencies.
In an X put up on Thursday, 21Shares stated the ETF submitting was a “key milestone in our imaginative and prescient to broaden exchange-traded entry to the SEI Community.”
Cointelegraph reached out to 21Shares for additional remark.
SEI presently trades for $0.30 after rising 4.2% within the final 24 hours. CoinGecko ranks SEI in 74th place when it comes to market capitalization.
One other SEI ETF has already been filed
US digital asset funding agency Canary Capital additionally utilized for an SEI ETF in April, which might “supply institutional and retail buyers direct publicity to staked SEI,” and now have “passive earnings by way of staking rewards,” in accordance with an April 30 assertion from the SEI community.
Justin Barlow, govt director on the Sei Improvement Basis, stated in an announcement following Canary Capital’s submitting that ETFs are “a gateway for broader adoption, offering a significant bridge between crypto and mainstream markets.”
A flood of different ETF functions ready within the wings
21Shares already has ETFs in the marketplace, together with the ARK 21Shares Bitcoin ETF, which tracks the worth of Bitcoin (BTC), and has utilized for others to trace SUI (SUI), XRP (XRP) and Ondo, the token of DeFi platform Ondo Finance.
Different ETF issuers equivalent to VanEck, Bitwise, and Grayscale have submitted functions for Solana (SOL), whereas different issuers are pursuing merchandise tied to XRP, Cardano (ADA) and even memecoins like Dogecoin (DOGE).
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In an effort to streamline the approval course of, the SEC is reportedly exploring a simplified itemizing construction that will automate a good portion of the approval course of, in accordance with crypto journalist Eleanor Terrett.
Terrett stated beneath the brand new system, issuers would submit the usual SEC kind S-1 and anticipate 75 days. If the SEC doesn’t put up a proper objection, the ETF is robotically authorized for itemizing, presumably lowering the back-and-forth communication between fund managers and the regulator.
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