Canary Capital Has Submitted to the SEC to List Its First-Ever Staked SEI ETF

It will seek to replicate the spot market price of SEI as determined by CoinDesk Indices, and its NAV will be priced at 4 PM New York time each day. This product will not use derivatives and will hold actual SEI tokens in its custody.

Canary Capital has submitted an application for a Staked SEI ETF to the U.S. Securities and Exchange Commission (SEC). This ETF, if approved, will be the first of its kind to offer investors the opportunity to invest in SEI, the native token of the Sei Network, through a traditional ETF format.

The ETF, to be named the Canary Small SEI Price ETF and trade on the New York Stock Exchange under the ticker SEIE, will seek to replicate the spot market price of SEI as determined by CoinDesk Indices. Its net asset value (NAV) will be priced at 4 PM New York time each day.

The product will not use derivatives and will hold actual SEI tokens in its custody. The two custodians for the ETF will be BitGo Trust Company and Coinbase Custody Trust Company. These custodians will be responsible for safely holding the SEI tokens. It's worth noting that the custodians are not insured by the Federal Deposit Insurance Corporation (FDIC). However, they have insurance policies to mitigate the risk of losses.

The ETF provides investors with an efficient way to invest in SEI through their regular brokerage account, without the need to create a crypto wallet, understand the complexities of blockchain technology, or handle private keys.

One of the unique aspects of the Canary Staked SEI ETF is the integration of the staking process. The fund will also earn more SEI tokens through staking, which involves verifying transactions on the Sei Network using the proof-of-stake (PoS) consensus mechanism. This staking reward system provides investors with the opportunity to earn additional income in addition to the possibility of benefiting from the fluctuations of the SEI price.

This ETF application follows Canary Capital's submission of a similar application for a TRX spot ETF earlier this year. The approval of the SEI ETF by the SEC would make it easier for traditional investors to invest in digital assets by holding tokens and receiving staking rewards.

This news comes as the SEC is currently reviewing several applications for spot Bitcoin ETFs from major asset managers, including BlackRock, Charles Schwab, and Invesco.