21Shares Eyes SEC Approval for First SEI ETF
21Shares Seeks SEC Green Light for SEI ETF
21Shares has registered an S-1 form with the U.S. Securities and Exchange Commission (SEC) to launch a SEI exchange-traded fund (ETF). Submitted on August 28, 2025, this move signifies the firm's ongoing efforts to expand its range of digital asset products.
Details of the Proposed 21Shares SEI ETF
The proposed 21Shares SEI ETF aims to provide investors exposure to SEI, the native token of the Sei Network. According to the SEC filing, the ETF is structured as a passive investment vehicle. This means it will mirror SEI’s price movements without employing leverage, derivatives, or speculative trading tactics.
The ETF's primary goal is to track the CF SEI-Dollar Reference Rate – New York Variant, a benchmark calculated by CF Benchmarks Ltd. The ETF's share value will be determined daily based on this benchmark.
The SEC's decision on this ETF is highly anticipated, especially given past delays, such as the 21Shares Polkadot ETF filing. This underscores the regulator's cautious approach to approving new crypto funds.
Potential Staking
The fund also intends to engage in staking activities, pending regulatory approval. The trust aims to earn additional SEI rewards through staking, subject to legal and tax considerations outlined in the filing. Any staking operations will be executed through third-party service providers. For projects considering staking, Codeum offers comprehensive smart contract auditing to ensure the security and reliability of staking mechanisms.
Coinbase Custody to Secure Assets
Coinbase Custody Trust Company is slated to serve as the ETF's custodian, responsible for safeguarding all SEI tokens on behalf of investors. Coinbase also provides custody services for 21Shares’ ONDO tokens, as seen with the company's ONDO ETF filing.
The filing emphasizes that assets will be held in cold storage, with private keys stored offline to minimize the risk of theft or loss.
The trust will primarily engage in SEI transactions related to the issuance and redemption of ETF shares. Authorized participants, typically large financial institutions, will have the ability to exchange SEI for ETF share baskets and vice versa.
These firms may also conduct cash transactions, with the trust converting cash into SEI via designated counterparties. The document clarifies that this product is not a direct investment in SEI but an avenue for individuals to invest through traditional brokers, eliminating the need to directly hold and transfer crypto tokens. This setup reduces risk and simplifies the process for investors seeking to benefit from SEI’s potential growth.
If approved, the 21Shares SEI ETF will join a growing number of crypto-backed funds aiming to enter regulated jurisdictions within the U.S.