21Shares, the asset management company, has officially submitted an S-1 registration to the U.S. Securities and Exchange Commission (SEC) for its SEI ETF, further expanding its portfolio of single-asset cryptocurrency investment products.
The SEI ETF is designed to track the CF SEI-Dollar Reference Rate and will operate as a passive product holding SEI tokens through Coinbase Trust’s custodial services. Notably, the fund will not utilize leverage or derivative instruments, ensuring transparency in investment.
A highlight of the ETF is its potential to participate in staking SEI to generate additional income. However, 21Shares has indicated that a final decision on implementing this feature has yet to be made.
Sei Network is a Layer-1 blockchain specifically developed for high-speed trading and exchange applications. The native SEI token plays a crucial role in the ecosystem, used for transaction fee payments, network governance participation, and staking to secure the system.
As of now, SEI is trading at $0.30, reflecting a 3.3% increase over the past 24 hours, according to data from CoinGecko.
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The filing by 21Shares comes amid a strong wave of altcoin ETF applications. Major fund managers like VanEck, Bitwise, and Grayscale have filed for ETFs linked to Solana, while many other issuers pursue products associated with XRP, Cardano, Dogecoin, HBAR, and Litecoin.
Bloomberg analysts express positive predictions, suggesting that the approval rate for many of these altcoin ETFs could exceed 90%, indicating a favorable shift in regulatory attitudes toward cryptocurrency investment products.
21Shares is not the only company targeting the SEI ETF market. Previously, Canary Capital filed the first S-1 for an SEI ETF, followed by Cboe, which submitted a 19b-4 application for a version that includes staking, intensifying competition in this segment.
The increasing interest in altcoin ETFs reflects a trend among fund managers to diversify their portfolios and a growing demand from investors seeking access to cryptocurrency assets beyond Bitcoin and Ethereum through traditional financial products.
