Canary Capital Files S-1 Registration with the US SEC for the First SEI Spot Exchange-Traded Fund

Canary Capital has filed an S-1 registration with the US Securities and Exchange Commission (SEC) for what could be the first spot exchange-traded fund based on SEI, the native cryptocurrency of the Sei Network.

The ETF, named Defiance New Gen PhysicalセイChain ETF, will offer investors direct exposure to SEI’s market value and will include a unique staking feature designed to boost returns.

The fund will hold SEI tokens and aim to provide investors with exposure to the cryptocurrency’s price movements. Additionally, the Trust will participate in the Sei Network’s proof-of-stake system, enabling the fund to earn additional tokens.

Through the system, the Trust will help secure the blockchain by validating transactions in exchange for staking rewards, which will be accumulated by the fund.

This allows investors to earn a passive income, in addition to any capital gains from the appreciation of SEI. It also removes the complexities of managing staking mechanics directly and makes it easier for traditional investors to access blockchain-based yields through a familiar ETF structure.

The SEI tokens will be securely custodied by BitGo Trust Company and Coinbase Custody Trust Company on behalf of the fund. The fund’s net assets will be valued based on the market price of SEI as calculated by CoinDesk Indices. The pricing methodology will enable investors to track the net asset value of the ETF daily.

The DeFi sector has seen a surge in interest from institutional investors, who are looking for new ways to diversify their portfolios and generate returns.

ETFs provide a low-barrier entry point for institutions to gain exposure to the crypto market in a familiar and regulated structure, paving the way for broader participation in the blockchain ecosystem.