Canary Capital Files for a Spot ETF Targeting the Sei (SEI) Cryptocurrency

This proposed ETF would stand out by including a staking feature, potentially allowing it to generate passive returns for investors.

Canary Capital has filed paperwork with the U.S. Securities and Exchange Commission (SEC) for a spot exchange-traded fund (ETF) that would offer exposure to Sei (SEI), a cryptocurrency linked to the Sei blockchain.

This proposed ETF, named the "Canary Small SEI Covered Call ETF," is designed to track SEI’s market value directly and would be managed by Canary Capital. The ETF would also be covered by BitGo and Coinbase, who would manage the custody of SEI tokens.

The fund would handle subscriptions and redemptions in cash, similar to how current spot Bitcoin and Ethereum ETFs operate in the U.S. market. It would not involve direct cryptocurrency transfers.

SEI is the native token of the Sei network, a Layer 1 blockchain that leverages the Cosmos SDK and supports Ethereum-compatible smart contracts. The blockchain is known for its speed and cross-chain functionality, aiming to combine the best of Ethereum’s development environment with performance goals like Solana.

This ETF could be the first spot SEI ETF to launch in the United States. It is also noteworthy for including a staking feature, which could potentially generate passive returns for investors.

The applicant, named "Canary Small SEI Covered Call ETF," is applying to list the ETF on the Cboe Bzx Exchange.

In other news, Circle is targeting Africa’s $5 billion payment problem with a stablecoin push.

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