Canary Capital has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to launch the first spot Sei (SEI) exchange-traded fund (ETF) that incorporates a staking feature.
The S-1 registration statement, filed late Wednesday, outlines the proposed Sei Trust, which seeks to provide investors with direct exposure to the value of SEI, the native token of the Sei blockchain network.
BitGo and Coinbase will oversee the custody of the fund’s assets.
Canary Capital’s Spot Sei ETF to Include Staking for Added Investor Yield
In an innovative move, the fund intends to stake a portion of its SEI holdings through various infrastructure providers, potentially yielding greater returns for its investors.
The ETF is designed to manage share creation and redemption in cash, adhering to the structural framework established by recently approved spot Bitcoin and Ethereum ETFs in the United States.
Sei is recognized as an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain, developed using the Cosmos SDK.
It boasts rapid transaction speeds and supports Inter-Blockchain Communication (IBC), allowing for enhanced cross-chain interoperability.
The network aspires to combine the programmability of Ethereum with the swift performance characteristics of Solana.
This filing contributes to an expanding series of crypto ETF proposals from Canary Capital, which has also filed applications related to assets such as Sui, Hedera, Litecoin, Pengu, and notably, Tron, the latter also featuring a staking component.
This initiative comes at a time when the industry is witnessing renewed optimism, particularly under the more crypto-friendly Trump administration.
Since January, the SEC has withdrawn multiple lawsuits against crypto companies and hosted public roundtable discussions. Paul Atkins, the former commissioner, now leads the SEC, succeeding Gary Gensler.
Analysts Increase Odds of Approval for Crypto ETFs
Bloomberg ETF analysts Eric Balchunas and James Seyffart have heightened the probability of approval for several spot crypto ETFs.
Would love to hear directly from Atkins, but all good chance of happening. Here’s our latest odds of approval for all the dif spot ETFs via @JSeyff https://t.co/nLhYJJmO9U pic.twitter.com/4AcJVwhics
— Eric Balchunas (@EricBalchunas) April 30, 2025
In their most recent assessment, Solana and Litecoin have emerged as frontrunners, boasting a 90% chance of approval, followed closely by XRP at 85%, while Dogecoin and Hedera stand at 80%, and Cardano, Avalanche, and Polkadot at 75%.
Although spot Bitcoin and Ethereum ETFs have secured approval, the SEC has yet to authorize any ETF with staking features, a practice already established in markets such as Canada and Europe.
In parallel, the Crypto Council for Innovation, which includes major players like a16zcrypto, Consensys, and Kraken, has urged the SEC for clear regulatory guidelines on staking.
In correspondence with Commissioner Hester Peirce, the coalition emphasized that staking should be classified as a technical process rather than a securities transaction and called for the SEC’s support in integrating staking into ETFs responsibly.
Recently, the SEC delayed its decisions on several proposed spot cryptocurrency ETFs.
These applications include ETFs aimed at tracking the spot prices of Polkadot (DOT) and Hedera (HBAR), along with a dual crypto fund focused on both Bitcoin (BTC) and Ethereum (ETH).
The SEC is expected to finalize its decisions regarding Nasdaq’s submissions for the Canary HBAR ETF and the conversion of Grayscale’s Polkadot Trust into an ETF by June 11.
The post Canary Capital Files for First Spot Sei ETF in US, Includes Staking Component appeared first on Finance Newso.
