SEI Network ETF Coming? 21Shares Submits S-1 for Passive SEI Exposure

The world of crypto investing may be getting a new product soon. 21Shares, one of the largest crypto exchange-traded product providers, has officially filed paperwork with the U.S. Securities and Exchange Commission (SEC). Their goal is to launch an Exchange-Traded Fund (ETF) for SEI, the native token of the Sei Network.

If approved, this would give investors in the United States a safe and regulated way to invest in SEI without needing to buy or hold the tokens directly. This news has caught the attention of traders, crypto fans, and institutions because it marks another step forward for altcoin ETFs in the U.S.

What Is the SEI ETF Proposal?

21Shares has submitted an S-1 registration statement to the SEC. This is the legal first step to bring a new ETF to the market. The proposed ETF will:

• Track the CF SEI-Dollar Reference Rate: This index collects SEI trading data from different crypto exchanges.

• Provide passive exposure: The fund will not use leverage or complex derivatives. Instead, it will simply follow the price of SEI.

• Use Coinbase Custody: Coinbase will hold the SEI tokens safely on behalf of the ETF.

This design makes it easy for regular investors to buy or sell SEI through a traditional brokerage account, just like they would with a stock.

Read Also: Is the AVAX ETF Ready to be Launched? Looking at the SEC

Staking Possibility: Extra Returns on the Horizon?

One interesting feature mentioned in the filing is the potential for staking SEI tokens. Staking means locking up tokens on the network to help validate transactions and, in return, earn rewards.

However, 21Shares has not yet confirmed whether staking will be included. They are still reviewing legal and regulatory risks. If approved in the future, this could make the ETF even more attractive since investors would gain exposure to SEI’s price plus potential staking rewards.

How Will the ETF Work?

Like other ETFs, this SEI ETF will issue shares that investors can buy and sell. Authorized participants (special financial institutions) will be able to:

• Subscribe (create) ETF shares using SEI tokens or cash.

• Redeem (remove) ETF shares and receive SEI tokens or cash back.

Third-party partners will handle the token conversions to make the process smooth.

Read Also: New US Crypto ETF Soon

Why This Matters for Crypto Investors

This filing is part of a larger race in the U.S. to bring altcoin ETFs to market. Bitcoin and Ethereum ETFs have already gained regulatory traction, but altcoin ETFs are still rare.

By launching a SEI ETF, 21Shares is competing with other firms like Canary Capital, which has also filed for SEI-based ETFs, some including staking. This signals that the market sees strong demand for regulated investment products beyond just Bitcoin and Ethereum.

About the Sei Network

To understand why this ETF matters, it helps to know about the Sei Network.

• Layer 1 Blockchain: Sei is built as its own blockchain rather than on top of another chain.

• Proof-of-Stake: The network uses a staking model for security and efficiency.

• Trading-Focused: Sei’s design is aimed at improving the infrastructure for trading digital assets, making it faster and more efficient.

Because of these features, Sei has gained popularity among developers and traders. A regulated ETF could bring even more visibility and adoption.

The Road Ahead

The SEC still needs to review the application. The process could take months, and approval is not guaranteed. However, if approved, the SEI ETF would:

• Give investors a simple, regulated way to invest in SEI.

• Potentially expand Sei Network’s reach and credibility.

• Push forward the broader acceptance of altcoin ETFs in the U.S.

The ticker symbol for the ETF has not yet been announced.

Read Also: Why Is SEI Price Up Today?

Conclusion

The filing of an S-1 by 21Shares for a Sei Network ETF is an exciting development in the crypto world. It shows that demand for regulated altcoin investment products is growing.

If approved, this ETF could open the door for many new investors to participate in the Sei ecosystem without needing to manage private keys or crypto wallets. Whether staking will be included remains uncertain, but even without it, this product could mark a new chapter for both Sei and the ETF market. Follow Bitrue, the best advice is to play carefully, study charts, and always stay safe.

FAQ

What is an ETF?

An ETF (Exchange-Traded Fund) is an investment product that tracks the value of an asset or group of assets. Investors can buy and sell ETF shares like stocks.

What makes the SEI ETF different?

This ETF will specifically follow the price of SEI tokens and may even allow staking in the future, which could provide extra rewards.

Who is behind this ETF?

The fund is being launched by 21Shares, a leading provider of crypto exchange-traded products.

Where will the SEI tokens be stored?

All SEI tokens will be securely stored by Coinbase Custody, a trusted crypto custodian.