A new SEI exchange-traded fund (ETF) from 21Shares has been registered in an S-1 registration statement with the U.S. Securities and Exchange Commission. It was submitted August 28, 2025, and it is the latest move by the firm to diversify its digital assets products.
21Shares SEI ETF to Track SEI Price with Potential Staking Option
This suggested fund will expose investors to SEI, the native token of the Sei Network and it is named 21Shares SEI ETF. According to the SEC document, the ETF is designed as a passive investment vehicle. This means that it will only track SEI’s price performance. It will not use leverage, derivatives, or speculative trading strategies.
The filing states that the SEI ETF’s objective is to track the CF SEI-Dollar Reference Rate – New York Variant, a benchmark calculated by CF Benchmarks Ltd. The ETF’s shares will be valued daily based on this benchmark.
The firm will hope the SEC won’t delay its ruling on this ETF. The SEC has previously postponed its decision on the 21Shares Polkadot ETF filing. This highlights the regulator’s caution in approving new crypto funds.
The fund also intends to be involved in staking provided the regulators permit it. The trust will gain further SEI rewards by staking. Though, this decision will be based on legal and tax considerations as has been highlighted in the filing. Any staking will be carried out using third-party service providers.
Coinbase Custody Will Offer Security for the 21Shares SEI ETF
In addition, the custodian of the ETF will be Coinbase Custody Trust Company. All SEI tokens will be kept in their custody on behalf of the investors. It is interesting to note that Coinbase also provides custody for 21Shares’ ONDO tokens when the company submitted its ONDO ETF filing.
The filing emphasizes that assets will be in cold storage facilities. Also, the private keys will be stored offline to eliminate the chance of theft or loss.
The trust will not actively buy and sell SEI other than when it has to do with the issuance and redemption of this ETF shares. Authorized participants, usually large financial firms, will be able to exchange SEI for baskets of ETF shares or redeem shares back into SEI.
These firms may also transact in cash, with the trust converting cash into SEI through designated counterparties. The document stresses that this product is not a direct investment in SEI itself.
Rather, it allows individuals to invest in the fund via conventional brokers. Therefore, they don’t need to possess and transfer crypto tokens. This arrangement makes it less risky and simpler for investors to benefit from SEI’s growth, including price appreciation.
Assuming the regulator approves this proposal, the 21Shares SEI ETF would join a growing portfolio of crypto-backed funds which seek entry into regulated jurisdictions in the U.S.
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Source: https://coingape.com/21shares-seeks-sec-nod-to-launch-first-sei-etf/
