Canary Capital seeks SEC approval for first staked Sei ETF

Canary Capital has filed an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to launch the first exchange-traded fund (ETF) focused on Sei (CRYPTO:SEI), a layer-1 blockchain token.

The proposed ETF aims to provide investors with direct exposure to SEI’s price while also generating additional yield through staking, which involves validating transactions on the Sei Network’s proof-of-stake blockchain.

According to the filing, the fund will hold actual SEI tokens rather than derivatives, with custody managed by BitGo Trust Company and Coinbase Custody Trust Company.

The ETF’s net asset value will be calculated daily based on spot pricing data from CoinDesk Indices.

This structure is designed to simplify access to staking rewards for both institutional and retail investors, removing the need to manage private keys or interact directly with blockchain validators.

“ETFs continue to serve as a gateway for broader adoption, providing a vital bridge between crypto and mainstream markets,” said Justin Barlow, Executive Director at the Sei Development Foundation.

Sei is an Ethereum Virtual Machine (EVM)-compatible blockchain built with the Cosmos SDK, emphasising scalability and transaction parallelisation.

The network supports cross-chain interoperability through Inter-Blockchain Communication (IBC) and aims to combine Ethereum’s (CRYPTO:ETH) programmability with Solana-like speed.

Canary Capital has also filed for other crypto ETFs, including those based on Litecoin (CRYPTO:LTC), Pengu (CRYPTO:PENGU), Sui (CRYPTO:SUI), and Tron (CRYPTO:TRX), the latter also featuring a staking component.

Approval of the Sei ETF would offer investors a regulated, accessible way to participate in the Sei ecosystem and earn staking rewards through a traditional investment vehicle.

At the time of writing, the Sei (SEI) price was $0.2227.