Coinbase to Custody Canary Capital’s Innovative SEI ETF with Staking Rewards

In a landmark development for the cryptocurrency investment space, Canary Capital has filed for the first-ever spot SEI ETF with the U.S. Securities and Exchange Commission (SEC). The proposed fund includes a pioneering staking component that could revolutionize how investors gain exposure to digital assets. Announced on May 2, 2025, this ETF aims to track SEI’s spot price while providing additional yield through staking rewards - a feature never before seen in traditional exchange-traded funds. Coinbase and BitGo have been selected as custody partners, bringing institutional-grade security to this innovative financial product. This move signals growing institutional acceptance of blockchain-native features like staking within regulated investment vehicles, potentially paving the way for similar crypto-financial hybrids in the future.

Canary Capital Proposes First-Ever SEI ETF with Staking Component

Canary Capital has made a groundbreaking move by filing for the first spot SEI ETF with the U.S. Securities and Exchange Commission. The proposal includes an innovative staking feature, setting a new precedent in the ETF space. The fund seeks to track SEI’s spot price while offering investors additional yield through staked assets.

Custody services will be managed by Coinbase and BitGo, ensuring secure asset storage. This development highlights the growing institutional interest in integrating blockchain-native features like staking into traditional financial products.

Canary Capital Files for First Spot SEI ETF With Staking Feature

Canary Capital has submitted an application to the U.S. Securities and Exchange Commission for what could become the first spot exchange-traded fund tracking SEI, the native token of the Sei blockchain. The proposed ETF distinguishes itself with an integrated staking mechanism, offering investors potential passive income alongside price exposure.

The fund would directly track SEI’s market value, employing BitGo and Coinbase as custodians. Like existing U.S. spot Bitcoin and Ethereum ETFs, it would process creations and redemptions in cash rather than cryptocurrency. This structure maintains regulatory alignment while introducing innovative yield-generation capabilities.

SEI serves as the foundational asset for the Sei network, a Cosmos SDK-based Layer 1 blockchain that maintains compatibility with Ethereum smart contracts. The platform has gained attention for its high-speed transactions and cross-chain interoperability, combining Ethereum’s developer familiarity with next-generation scalability.

Movement Token Slumps 14% as Coinbase Suspends Trading

Movement Labs’ MOVE token plunged over 13% after Coinbase announced it would suspend trading, citing "recent reviews." The decision follows a CoinDesk investigation into market-making arrangements that allegedly incentivized price manipulation.

While the broader CoinDesk 20 Index gained 4.4%, Movement Labs is probing how market maker Web3Port may have acquired a substantial token stash later dumped on retail investors. Coinbase will halt MOVE trading on May 15 at 2:00 p.m. PT, with order books already shifted to limit-only mode.

21Shares Files for SEC Approval to Launch Spot SUI ETF

21Shares, a leading digital asset manager, has submitted an S-1 filing with the U.S. Securities and Exchange Commission for a spot exchange-traded fund tied to SUI, the native token of the SUI blockchain network. The proposed ETF would offer investors direct exposure to SUI’s price movements without the complexities of custody or staking.

Coinbase Custody will hold the underlying assets, with the fund’s net asset value calculated daily based on a benchmark index tracking SUI’s spot market price. The filing explicitly rules out staking, leverage, or derivative strategies—a deliberate contrast to some competing crypto investment products.

This marks another institutional attempt to bridge traditional finance with digital assets following January’s landmark Bitcoin ETF approvals. The cash-creation model mirrors established commodity ETFs, potentially appealing to regulators wary of in-kind crypto transactions.

Movement (MOVE) Token Plummets 16% Following Coinbase Delisting Announcement

Movement Network’s native token MOVE tumbled 16% in under an hour after Coinbase revealed plans to suspend trading. The exchange cited failure to meet ongoing listing standards, with delisting effective May 15, 2025 at approximately 2 PM ET.

Coinbase’s proactive monitoring identified compliance gaps in MOVE’s current status, though specific deficiencies remain undisclosed. The delisting affects both Simple and Advanced Trading interfaces, removing access for retail and institutional traders alike.

Market reactions underscore the outsized influence of tier-1 exchange approvals in crypto valuations. This development follows Coinbase’s established pattern of periodically reviewing assets against evolving compliance benchmarks.