21Shares Files for SEI ETF After Canary Capital

The race to launch the first SEI ETF in the U.S. is heating up. Crypto asset manager 21Shares has filed with the SEC for an ETF that will track the price of SEI, just months after Canary Capital submitted its own application in April. This sets the stage for a head-to-head battle between the two firms to be the first to bring SEI exposure to both retail and institutional investors.

21Shares SEI ETF Filing With SEC

According to the S-1 form, Coinbase Custody Trust Company will serve as the custodian for SEI, while CF Benchmarks will provide pricing data across multiple exchanges. Interestingly, 21Shares is also considering adding SEI staking to the fund to generate extra yield. However, the firm remains cautious, citing potential tax and regulatory challenges.

 21Shares described the filing as a “key milestone” in its mission to expand access to the Sei network.

Canary Capital SEI ETF Application in April

Canary Capital was the first to file for an SEI ETF back in April. Their proposal goes a step further by offering exposure not only to SEI but also to staking rewards, giving investors a chance at passive income. 

Following the filing, Justin Barlow, Executive Director of the Sei Development Foundation, highlighted that ETFs could serve as a “gateway for broader adoption”, helping bridge the gap between crypto and traditional finance.

Altcoin ETF Filings Beyond Bitcoin and Ethereum

The SEI filings come as part of a broader wave of ETF applications for altcoins. While the U.S. has so far only approved Bitcoin spot ETF and Ethereum spot ETF, issuers like VanEck, Grayscale, and Bitwise are pushing for funds tied to Solana, XRP, Cardano, and even Dogecoin. For its part, 21Shares has also filed for ETFs linked to SUI, Ondo, and XRP, adding to its growing product lineup alongside the ARK 21Shares Bitcoin ETF.

SEC ETF Approval Process May Change

According to a report by crypto journalist Eleanor Terrett, the SEC is considering a simplified approval process. Under the proposed system, an S-1 filing could be automatically approved within 75 days if no objections are raised. Such a change would significantly reduce friction between issuers and regulators, potentially opening the door for SEI ETF approval and other crypto ETFs to hit the market much faster than expected.

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