Canary Capital Files S-1 Registration with the SEC for the First Sei (SEI) ETF

Canary Capital has filed for what would be the first spot Sei (SEI) ETF, which also includes a staking component.

The ETF, which is subject to approval by the U.S. Securities and Exchange Commission, will offer direct price exposure to SEI, the native token of the Sei network, according to a filing on Wednesday.

The trust’s assets will be held in segregated custody by BitGo and Coinbase, while a portion of the trust’s holdings will be staked via third-party infrastructure providers, potentially generating additional yield for investors.

The fund structure closely resembles that of the approved Bitcoin and Ethereum spot ETFs, featuring cash-based share creations and redemptions, rather than in-kind transactions.

"The launch of the Sei Network marks a significant moment in the evolution of blockchain technology," said Justin Barlow, Executive Director at the Sei Development Foundation.

"We are proud to see U.S.-based institutions like Canary Capital playing a role in advancing this innovation through the creation of the first-ever Sei ETF."

Sei Network is a Layer 1 blockchain developed using the Cosmos SDK and designed to optimize for DeFi protocols. It launched its mainnet in 2023 and has since processed billions of transactions across more than 18 million wallets.

Canary’s application for a Sei ETF is part of a broader campaign by the asset manager, having recently submitted proposals for several other crypto-linked ETFs, including spot funds for Pengu, Sui, Hedera, Litecoin, and most recently Tron, which also included a staking feature.

This move follows the launch of the Sei Development Foundation, aiming to foster the protocol’s adoption and further U.S.-based crypto innovation.

Several ETF filings await approval

The application for a Sei ETF is among over 70 pending crypto ETF proposals currently being reviewed by the SEC.

Other asset managers, including Bitwise, Grayscale, Franklin Templeton, and REX Shares, have submitted requests for spot ETFs linked to XRP, Solana, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot.

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, Solana and Litecoin ETF proposals currently have the highest likelihood of approval at 90%, followed by XRP at 85%, and Dogecoin and Hedera at 80%.

The surge in applications marks a shift in regulatory sentiment under the pro-crypto Trump administration, with Paul Atkins, a known industry ally, now chairing the SEC.

The agency has already dropped several high-profile lawsuits and hosted public roundtables with crypto executives, signaling a more cooperative posture than seen under former Chair Gary Gensler.