Crypto Asset Manager 21Shares filed with the U.S. Securities and Exchange Commission (SEC) to launch a fund traded on an exchange tracking the price of SEIs following a Canary Capital application in April.
The S-1 Registration Statement filed with the SEC on Thursday suggests using data from multiple crypto exchanges to track the price of your SEI using Crypto Price Price Index Provider CF Benchmarks.
SEI is a native token for the SEI network, both of which were released in August 2023. The network itself is a layer 1 blockchain specializing in decentralized exchanges and market trading infrastructure. That native token can be used to participate in payment of network gas fees and governance.
The Coinbase Custody Trust Company acted as a SEI custodian, and 21 shares also made it possible to staking SEI to generate additional returns. However, the company said it is still investigating whether there is “overly legal, regulatory or tax risk.”
First Sei etf competition
Currently, there are no approved spot Crypto ETFs in the US other than Bitcoin and Ethereum, but there are several applications in ETFs targeting other cryptocurrencies.
In X’s post Thursday, 21 shares said the ETF submission was a “significant milestone in our vision to expand exchange sales access to the SEI network.”
Cointelegraph reached out to 21share for further comment.
SEI is currently trading at $0.30 after a 4.2% rise in the last 24 hours. Coingecko ranks SEI at 74th in terms of market capitalization.
Another SEI ETF has already been submitted
According to a statement from the SEI Network on April 30, US digital asset investment firm Canary Capital also applied for the SEI ETF in April, “providing direct contact with the SEI bets on institutional investors who are directly exposed to stocked SEIs.”
Justin Barlow, executive director of the SEI Development Foundation, said in a statement after Canary Capital’s submission, that the ETF is “a wide adoption gateway that provides a significant bridge between the crypto and mainstream markets.”
Flood of other ETF applications waiting on the wing
21 shares already have ETFs in the market. This includes the ARK 21 share Bitcoin ETF, which tracks the price of Bitcoin (BTC), and others have been applied to track SUI (SUI), XRP (XRP) and ONDO.
Other ETF publishers, such as Vaneck, Bitwise and Grayscale, have submitted applications for Solana (SOL), while other publishers are pursuing Memecoin-related products, such as XRP, Cardano (ADA), and even Dogecoin (Doge).
Related: Crypto ETPS Post Loss $1.4 billion amid recent Bitcoin and ether sale
Crypto journalist Eleanor Terrett said in order to streamline the approval process, the SEC is reportedly investigating a simplified list structure that automates a significant portion of the approval process.
Under the new system, the publisher will submit a standard SEC Form S-1 and wait 75 days. If the SEC has not posted a formal objection, the ETF could automatically approve the listing, reducing the front-and-back communication between the fund manager and the regulator.
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