Crypto asset supervisor 21Shares filed with the US Securities and Alternate Fee (SEC) to launch an exchange-traded fund monitoring the value of SEI, following Canary Capital’s comparable utility in April.
The S-1 registration assertion filed with the SEC on Thursday proposes using crypto worth index supplier CF Benchmarks to trace the value of SEI, utilizing knowledge from a number of crypto exchanges.
SEI is the native token of the SEI community, which was launched in August 2023. The community itself is a layer-1 blockchain that focuses on buying and selling infrastructure for decentralized exchanges and marketplaces. Its native token can be utilized to pay for community fuel charges and take part in governance.
Coinbase Custody Belief Firm would act because the SEI custodian, whereas 21Shares additionally floated the potential for staking SEI to generate further returns. Nevertheless, the agency stated within the submitting it’s nonetheless investigating whether or not there could be “undue authorized, regulatory or tax danger.”
Race for first SEI ETF
There are at present no accredited spot crypto ETFs within the US apart from Bitcoin and Ethereum, though there are a number of purposes for ETFs focusing on different cryptocurrencies.
In an X put up on Thursday, 21Shares stated the ETF submitting was a “key milestone in our imaginative and prescient to broaden exchange-traded entry to the SEI Community.”
Cointelegraph reached out to 21Shares for additional remark.
SEI at present trades for $0.30 after rising 4.2% within the final 24 hours. CoinGecko ranks SEI in 74th place by way of market capitalization.
One other SEI ETF has already been filed
US digital asset funding agency Canary Capital additionally utilized for an SEI ETF, in April, which might “supply institutional and retail buyers direct publicity to staked SEI,” and still have “passive revenue by way of staking rewards,” in accordance to an April 30 assertion from the SEI community.
Justin Barlow, govt director on the Sei Growth Basis, stated in a press release following Canary Capital’s submitting that ETFs are “a gateway for broader adoption, offering a significant bridge between crypto and mainstream markets.”
A flood of different ETF purposes ready within the wings
21Shares already has ETFs in the marketplace, together with the ARK 21Shares Bitcoin ETF, which tracks the value of Bitcoin (BTC), and has utilized for others to trace SUI (SUI), XRP (XRP) and Ondo, the token of DeFi platform Ondo Finance.
Different ETF issuers akin to VanEck, Bitwise, and Grayscale have submitted purposes for Solana (SOL), whereas but different issuers are pursuing merchandise tied to XRP, Cardano (ADA) and even memecoins like Dogecoin (DOGE).
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In an effort to streamline approvals, the SEC is reportedly exploring a simplified itemizing construction that will automate a good portion of the method, in line with crypto journalist Eleanor Terrett.
Terrett stated underneath the brand new system, issuers would submit the usual SEC type S-1 and look forward to 75 days. If the SEC doesn’t put up a proper objection, the ETF could be robotically accredited for itemizing, probably decreasing the back-and-forth communication between fund managers and the regulator.
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