Canary Capital Files to Launch the First-Ever Staked SEI Exchange-Traded Fund (ETF)

Canary Capital has officially submitted a registration with the U.S. Securities and Exchange Commission (SEC) for what would be the first-ever staked SEI exchange-traded fund (ETF).

If approved, the ETF will offer investors both direct exposure to the SEI token and yield generation through staking, in a move that combines decentralized finance (DeFi) protocols with traditional asset management.

The fund, structured as a Delaware statutory trust, is collecting documents for the ETF with the goal of listing it on a national securities exchange, according to the S-1 registration statement filed on April 30, 2025.

The ETF will hold SEI, the native token of the Sei Network, and participate in the network's staking protocols to generate additional returns. This aligns with a broader trend of institutions seeking structured crypto investment vehicles that go beyond tracking asset prices to include passive income generation.

The ETF's net asset value (NAV) will be calculated daily using spot pricing data from CoinDesk Indices for SEI, according to the filing.

For custodial services, the fund will engage BitGo Trust Company and Coinbase Custody Trust Company, which are not FDIC-insured but will be covered by private insurance policies. These custodians will be responsible for the safekeeping and staking of SEI tokens, ensuring compliance with applicable regulatory standards while aiming to maximize yield potential.

This initiative reflects the rising interest among institutional investors in gaining access to staking rewards on proof-of-stake blockchains.

Typically, earning yield on blockchains like Sei requires users to select and interact directly with on-chain validators, manage private keys for securing funds, and assume technical risks associated with smart contracts. Canary Capital's approach aims to simplify this process by offering a packaged, compliant product with the familiar structure of an ETF.

This move also highlights the maturation of staking as a credible yield mechanism. As investors seek alternatives to traditional fixed income instruments in a low-interest environment, staking has emerged as a promising avenue for generating passive income.

By integrating staking into a regulated vehicle that is accessible to a wider range of participants, Canary Capital is hoping to legitimize and expand the role of DeFi-native rewards in broader financial markets.

The SEC's response to this filing could set a significant precedent. While the agency has approved several crypto-based ETFs in recent years, it remains cautious around staking, which presents unique regulatory challenges compared to traditional asset classes.

These challenges include the tax treatment of staking rewards, classification of staking as a service or a security, and mitigation of security risks related to validator behavior.

Approval of this ETF could signal a shift in how U.S. regulators view the blending of DeFi protocols with traditional finance. Conversely, delays or rejections may reflect continued regulatory hesitation.

Analysts expect the SEC's decision timeline to stretch into Q3 2025 as the agency assesses the implications of this novel product offering.

In the meantime, Sei Network continues to attract developer interest and ecosystem expansion. The recent launch of the Sei Development Foundation and ongoing adoption across DeFi applications strengthen the case for SEI as a core asset in the staking economy.

Canary Capital's filing positions SEI at the center of the next wave of innovation—where passive yield and public markets converge.