21Shares SEI ETF Files, Entering the Race with Canary Capital
The U.S. Securities and SEC has received a filing from cryptocurrency asset manager 21Shares about the establishment of an ETF...
Quick overview
- 21Shares has filed with the SEC to establish an ETF that tracks the price of SEI, the native token of the Sei blockchain, competing with Canary Capital's earlier application.
- The Sei Network, launched in August 2023, is a layer-1 blockchain aimed at decentralized marketplaces, with its token SEI currently trading at around $0.30.
- The proposed 21Shares SEI ETF would utilize CF Benchmarks' data and Coinbase Custody Trust Company for asset management, while exploring staking options for investor returns.
- Industry insiders believe the SEI ETF has a strong chance of SEC approval, which could enhance regulated access to smaller cryptocurrency assets.
The U.S. Securities and SEC has received a filing from cryptocurrency asset manager 21Shares about the establishment of an ETF that monitors the price of SEI, the native token of the Sei blockchain network. Canary Capital which previously applied for a comparable product earlier this year is now directly competing with 21Shares as a result of this action.
The Sei Network and SEI: What are they?
The Sei Network is a layer-1 blockchain designed to developing the infrastructure for decentralized marketplaces and exchanges. The network’s native token SEI, allows holders to take part in governance decisions and is used to pay gas fees. The Sei Network and SEI was launched in August 2023.
SEI is now trading at about $0.30 according to CoinGecko, and is ranked 74th among cryptocurrencies in terms of market capitalization. The price of the token has increased by 4.2%, but it is still far behind its peak of $1.14 in the last day which was attained in March 2024.
Data about the 21Shares ETF Filing
As stated in the SEC filing, the 21Shares SEI ETF would monitor the SEI price with CF Benchmarks’ data from several exchanges. Also as the custodian for SEI holdings, use Coinbase Custody Trust Company. The Staking SEI tokens could be one way to increase investor returns but the company stated that it is still assessing legal and tax issues before making a final choice.
The 21Shares stated in an X (formerly Twitter) post that this submission marks a “significant turning point” in its strategy to increase regulated access to the Sei Network.
🔥 JUST IN: 21Shares has filed with the SEC to launch a $SEI ETF. pic.twitter.com/brjTJFQxI0
— Cointelegraph (@Cointelegraph) August 28, 2025
The Competing Application of Canary Capital
As the first company to apply for SEC approval of an SEI ETF, Canary Capital filed their application in April 2025. Its idea made staking incentives a key component, allow investors to watch the price of SEI and use staking to generate passive income.
The executive director of the Sei Development Foundation, Justin Barlow, praised these ETF efforts, stating that they serve as a springboard for the general public’s acceptance of blockchain assets.
Broader Context of Crypto ETFs
Only spot Ethereum ETFs and Bitcoin ETFs, which launched in 2024, have received SEC approval at this point. But now, money managers are rushing to introduce ETFs for cryptocurrencies such as Dogecoin, XRP, Cardano, and Solana.
Furthermore managing the ARK 21Shares Bitcoin ETF 21Shares is now accepting applications for ETFs associated with SUI, XRP and Ondo Finance. The Big players VanEck, Bitwise and Grayscale are all awaiting SEC rulings on their own applications for the Solana and XRP ETFs.
ETF applications may be approved automatically under the SEC’s proposed streamlined approval process if the agency receives no objections within 75 days. This has the potential for quick approvals and prevent lengthy back-and-forth discussions with authorities if it happens.
Next Steps?
According to industry insiders, the SEI ETF is quite likely to be approved, joining the Ethereum and Bitcoin ETFs that are now offered in the United States. This might be a major progress for controlled access to smaller cryptocurrency assets if it is allowed, particularly as it may incorporate staking benefits.
Currently the cryptocurrency industry and investors are closely observing which company like 21Shares or Canary Capital will launch an SEI ETF first.
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