Newton Gitonga
The cryptocurrency market displayed mixed performances on Friday after Bitcoin’s failed breakout.
Nevertheless, the community remains optimistic, with experts predicting significant rallies.
Meanwhile, crypto investment company 21hares fueled enthusiasm among SEI holders.
Its latest filing with the SEC shows that the firm is planning to launch a Sei exchange-traded fund in American markets.
If approved, the new financial product would allow individuals to purchase shares that reflect SEI’s price performance without having to manage private keys, custody, or wallets themselves.
We’re excited to announce that we’ve filed with the SEC for a SEI ETF in the U.S. – a key milestone in our vision to expand exchange-traded access to @Seinetwork.
21Shares’ Sei filing is part of a broader trend that has altcoin ETF applications flooding the SEC’s desk this year.
Nevertheless, the latest approval has gained traction as it incorporates staking, which is new in US cryptocurrency ETFs.
The product’s sponsor, 21Shares US LLC, declared that it might stake some of the Sei holdings to secure staking incentives.
A passive income tool with a clear focus
The filing highlighted that the Sei Trust would distribute shares to investors trading on a US-based exchange (to be named later).
The 21Shares SEI ETF would be a passive income instrument, allowing investors to hold tokens while tracking price performances.
The application clarifies that the Trust won’t explore speculative strategies like using leverage, trading derivatives, or market timing.
The fund’s mission is to give interested individuals straightforward exposure to SEI market performance.
The staking twist
Indeed, the Trust will hold SEI assets passively.
However, the filing opened the door for staking, looking to use the Sei holdings to capture staking prizes.
Meanwhile, the staking narrative on the Sei ETF will proceed if 21Shares US LLC (the sponsor) determines the possibilities without regulatory risks.
The dangers include endangering the ETF’s ability to succeed as a grantor trust. The filing added:
The Sponsor has not yet determined that staking can be conducted as a public trust as of the date of this Prospectus.
If 21Shares US LLC pursues staking, the Trust might collaborate with third-party providers to support staking activities.
The proposal highlights the possibility of navigating liquid staking tokens in the future.
What’s next?
The US Securities and Exchange Commission hasn’t authorized any crypto ETF beyond Bitcoin and Ethereum.
It has delayed its decision on several altcoins’ exchange-traded funds filings in the past months, pushing most deadlines to October.
Moreover, the regulator has been more cautious about cryptocurrency ETFs that incorporate staking.
Still, 21Shares’ filing indicated confidence among ETF issuers that regulators will consider new digital asset investment instruments soon.
Recently, the Chicago Board Options Exchange sought SEC approval for Canary Capital’s staked SEI ETF.
SEI price outlook
The altcoin maintains a bullish structure amidst the new ETF developments.
SEI gained more than 2% in the past day to $0.3019.
The surging 24-Hr trading volume highlights revived sentiments.
A potential Sei ETF approval would position the token for impressive performance in the anticipated altcoin rally.
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