Canary Capital seeks SEC approval for staked SEI ETF

• A portion of the trust’s holdings will be staked via third-party infrastructure providers.
• According to the filing , the ETF would offer direct price exposure to SEI, the native token of the Sei network.
• The Sei filing joins a growing queue of over 70 pending crypto ETF applications currently under SEC review.

Canary Capital has filed an S-1 registration with the Securities and Exchange Commission (SEC) seeking approval for what would be the first spot Sei (SEI) ETF — one that also incorporates a staking component.

According to the filing , the ETF would offer direct price exposure to SEI, the native token of the Sei network, with custody handled by BitGo and Coinbase.

A portion of the trust’s holdings will be staked via third-party infrastructure providers, potentially generating additional yield for investors.

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

Commenting on the development, Justin Barlow, Executive Director at the Sei Development Foundation, said:

ETFs continue to serve as a gateway for broader adoption, providing a vital bridge between crypto and mainstream markets.”

Sei Network is a Layer 1 blockchain developed using the Cosmos SDK.

Sei launched its mainnet in 2023, and has since processed billions of transactions across more than 18 million wallets.

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

The move comes on the heels of the Sei Foundation’s launch of the Sei Development Foundation, aimed at promoting the protocol’s adoption and advancing U.S.-based crypto innovation.

Several ETF filings await approval

The Sei filing joins a growing queue of over 70 pending crypto ETF applications currently under SEC review.

Asset managers including Bitwise, Grayscale, Franklin Templeton, and REX Shares have submitted requests for spot ETFs tied 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 reflects shifting 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.