21Shares Files with SEC to Launch First-Ever SEI ETF in the U.S. – A Game Changer for Crypto Investors in 2025
- What’s the Big Deal About the 21Shares SEI ETF?
- How Will the SEI ETF Work?
- Who’s Safeguarding the SEI Tokens?
- Why Is This a Big Step for 21Shares?
- What’s Next for the SEI ETF?
- FAQs About the 21Shares SEI ETF
In a bold move that could reshape the crypto investment landscape, 21Shares—one of the world’s largest digital asset managers—has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to launch the first SEI-based ETF. Filed on August 28, 2025, this initiative aims to provide investors with regulated exposure to SEI, the native token of Sei Network, without the hassle of managing digital wallets. The ETF will track SEI’s price performance passively, potentially include staking rewards, and be custodied by Coinbase. Here’s everything you need to know about this groundbreaking development.
What’s the Big Deal About the 21Shares SEI ETF?
If approved, the 21Shares SEI ETF WOULD mark a significant milestone for both the crypto and traditional finance worlds. Investors would gain direct exposure to SEI’s price movements through a familiar, regulated vehicle—no need to dive into the complexities of blockchain wallets or custody solutions. According to the S-1 filing, the ETF will track the CF SEI-Dollar Reference Rate (New York Variant), calculated by CF Benchmarks Ltd., ensuring transparency and reliability. And let’s be honest, who wouldn’t want to trade SEI without the headache of private keys?
How Will the SEI ETF Work?
The ETF is designed as a passive investment vehicle, meaning it won’t dabble in leverage, derivatives, or speculative strategies. Instead, it will mirror SEI’s price performance, with daily valuations based on the benchmark index. But here’s where it gets interesting: the filing hints at the possibility of staking Sei tokens to generate additional yields. Of course, this would require regulatory green lights and third-party staking providers—because, as we all know, the SEC loves its paperwork.
| SEI Price | Market Cap |
|---|---|
| $1.78 | $B |
Who’s Safeguarding the SEI Tokens?
Coinbase Custody Trust Company—yes, the same folks handling 21Shares’ Ondo ETF—will be responsible for securing the SEI holdings. All tokens will be stored in cold storage, with private keys kept offline to minimize risks like hacks or losses. The ETF won’t actively trade SEI; instead, authorized participants (think big financial institutions) will handle creations and redemptions, swapping tokens for ETF shares or vice versa. Cash conversions will also be an option, with the trust managing market purchases through designated counterparties.
Why Is This a Big Step for 21Shares?
This filing isn’t just about SEI—it’s part of 21Shares’ broader push into the U.S. regulated market. The firm is still waiting for SEC approval on its Polkadot (DOT) ETF proposal, which has faced delays. Given the SEC’s cautious stance on crypto ETFs, the SEI filing signals 21Shares’ determination to expand its product lineup despite regulatory headwinds. If successful, the ETF would join a growing roster of crypto-backed funds in the U.S., further legitimizing altcoins for institutional and retail investors alike.
What’s Next for the SEI ETF?
The SEC’s approval timeline remains uncertain, but one thing’s clear: demand for crypto ETFs is surging. Institutional and retail investors are clamoring for regulated access to digital assets, and 21Shares is betting big on SEI to meet that demand. Whether the SEC shares that enthusiasm is another story—remember, this is the same agency that’s taken its sweet time with Bitcoin and ethereum ETFs. Still, if approved, the SEI ETF could pave the way for more altcoin-based funds, reshaping how investors interact with crypto.
This article does not constitute investment advice.
FAQs About the 21Shares SEI ETF
What is the SEI ETF?
The 21Shares SEI ETF is a proposed exchange-traded fund designed to track the price of SEI, the native token of Sei Network, offering investors regulated exposure to the asset.
When was the SEI ETF filed with the SEC?
The S-1 registration was submitted on August 28, 2025.
Will the SEI ETF include staking?
Potentially—if regulators approve, the ETF may stake SEI tokens to generate additional yields through third-party providers.
Who is the custodian for the SEI ETF?
Coinbase Custody Trust Company will safeguard the SEI holdings in cold storage.
