Canary Capital Files for First Spot Sei ETF in US, Includes Staking Component

Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

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Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has...

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Last updated: 

April 30, 2025

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Canary Capital has filed with the U.S. Securities and Exchange Commission (SEC) for the first spot Sei (SEI) exchange-traded fund with a staking feature included.

According to the S-1 registration statement submitted late Wednesday, the proposed Sei Trust would offer investors direct exposure to the price of SEI, the native asset of the Sei blockchain network.

Custody of the fund’s assets would be managed by BitGo and Coinbase.

Canary Capital’s Spot Sei ETF to Include Staking for Added Investor Yield

The fund also plans to stake a portion of its SEI holdings through one or more infrastructure providers, potentially offering additional yield to shareholders.

The ETF would handle share creation and redemption in cash, consistent with the structure used by recently approved spot Bitcoin and Ethereum ETFs in the U.S.

Sei is an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain built with the Cosmos SDK.

It features rapid execution and supports Inter-Blockchain Communication (IBC), enabling cross-chain interoperability.

The network aims to deliver the programmability of Ethereum with the high-speed performance of Solana.

The filing adds to a growing list of crypto ETF proposals from Canary Capital, which has recently submitted applications tied to assets such as Sui, Hedera, Litecoin, Pengu, and most notably, Tron — the latter also featuring a staking component.

The move comes as the industry experiences increased optimism under the more crypto-friendly Trump administration.

Since January, the SEC has dropped several lawsuits against crypto firms and hosted public roundtables. Former Commissioner Paul Atkins now chairs the SEC, replacing Gary Gensler.

Analysts Increase Odds of Approval for Crypto ETFs

Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart have placed high odds on the approval of several spot crypto ETFs.

According to their latest update, Solana and Litecoin lead the pack with a 90% approval likelihood, followed by XRP (85%), Dogecoin and Hedera (80%), and Cardano, Avalanche, and Polkadot (75%).

While spot Bitcoin and Ethereum ETFs have already received approval, the SEC has yet to greenlight any ETF product with staking functionality — something already seen in markets like Canada and Europe.

In a parallel development, the Crypto Council for Innovation, backed by major firms including a16zcrypto, Consensys, and Kraken, has called on the SEC for regulatory clarity on staking.

In a letter to Commissioner Hester Peirce, the coalition argued that staking is a technical process, not a securities transaction, and urged the agency to support its responsible inclusion in ETFs.

Last week, the SEC postponed its decision on several proposed spot cryptocurrency ETFs.

The applications include ETFs tracking the spot prices of Polkadot (DOT) and Hedera (HBAR), as well as a dual crypto fund focused on Bitcoin (BTC) and Ethereum (ETH).

The SEC now has until June 11 to decide on Nasdaq’s filings for the Canary HBAR ETF and the conversion of Grayscale’s Polkadot Trust into an ETF.