Market News

SEC Greenlights Canary Capital’s Innovative Sei ETF with Staking Features

Canary Capital has submitted an application to the U.S. Securities and Exchange Commission (SEC) for what is poised to be the first exchange-traded fund (ETF) based on Sei (SEI), the native token of the Sei blockchain.

This forward-thinking fund aims to provide investors with direct exposure to the price of SEI while also incorporating staking to potentially enhance returns.

Staking allows investors to earn additional yield by participating in the network's proof-of-stake mechanism, a process that involves validating transactions in exchange for rewards.

The ETF will manage its custody through prominent platforms like BitGo and Coinbase, ensuring secure handling of its assets.

It employs a fund structure akin to existing approved Bitcoin and Ethereum ETFs, using cash transactions for share creations and redemptions.

Sei has witnessed significant growth, processing billions of transactions and gaining traction with over 18 million wallets since its mainnet launch in 2023.

Canary's filing is part of a broader trend, with over 70 crypto ETF applications currently pending SEC review, indicating a shift toward more crypto-friendly regulatory conditions.

Industry experts suggest that such ETFs are crucial for fostering wider adoption of cryptocurrencies, as they offer a familiar investment vehicle for traditional investors.

As regulatory landscapes evolve, the emphasis on staking within crypto funds highlights the industry's need for clarity, distinguishing innovative practices from conventional investment methods.

With interest in digital assets continuing to grow, market participants are closely watching the SEC's next moves regarding ETF approvals.