21Shares Eyes SEI ETF with Staking Rewards for US Investors

21Shares Enters the Altcoin ETF Race with SEI Fund

Asset management firm 21Shares is seeking regulatory approval to launch an exchange-traded fund (ETF) focused on the Sei blockchain's native token (SEI). This move comes on the heels of successful Bitcoin and Ethereum ETF launches, signaling a growing appetite for broader crypto exposure among US investors.

Staking Rewards a Key Feature

The proposed 21Shares SEI ETF aims to track the performance of SEI while also generating potential yield through staking rewards. This feature could make the ETF more attractive to investors seeking passive income from their crypto holdings. However, 21Shares has clarified that the possibility of staking within a public trust structure is still under evaluation.

Increased Competition in the Altcoin ETF Space

21Shares isn't the only firm vying for a SEI ETF. Canary Capital has already filed an application for a similar product with staking objectives. The SEC is currently reviewing multiple crypto ETF applications, including those for XRP and Solana, with potential approval deadlines in October.

Krishnendu Chatterjee, CEO and co-founder of A2ZCryptoInvestment, believes it's "highly likely" that 21Shares' SEI ETF would be accepted. He added that XRP, Solana, and AVAX ETFs have high chances of getting approved by year's end.

Coinbase to Provide Custody and Brokerage Services

Coinbase Custody Trust Company will serve as the primary custodian for the ETF's SEI holdings, while Coinbase Inc. will act as the prime broker for trading activities.

SEI's Market Position

SEI is currently ranked 74th in market capitalization, valued at approximately $1.82 billion. The token is trading around $0.30, down 73.7% from its all-time high in March 2024.

Key Takeaways

• 21Shares has filed for a SEI ETF, offering potential exposure to SEI and staking rewards.
• The SEC is reviewing multiple altcoin ETF applications, with potential approvals expected in the coming months.
• Coinbase will provide custody and brokerage services for the 21Shares SEI ETF.