TLDR
- Canary Capital files for a SEI ETF with the SEC.
- The ETF will hold real SEI tokens and earn staking rewards.
- BitGo and Coinbase Custody will secure the fund’s assets.
- SEI pricing will be tracked by CoinDesk Indices.
- This is part of Canary’s push into crypto ETFs.
Canary Capital has submitted a registration statement on Form S-1 with the United States Securities and Exchange Commission (SEC) for a proposed exchange-traded fund (ETF) named the Canary Staked SEI ETF. The fund aims to provide direct exposure to the price of SEI, the native token of the Sei Network, while earning additional SEI through staking.
New: @CanaryFunds officially files a prospectus with the SEC for a Staked SEI ETF. pic.twitter.com/NqXmdQWmjP
— James Seyffart (@JSeyff) April 30, 2025
The ETF seeks to track the spot market price of SEI as calculated by CoinDesk Indices, Inc., which will serve as the official pricing benchmark. The fund’s net asset value (NAV) will be determined daily at 4:00 p.m. Eastern Time based on spot prices aggregated from digital asset trading platforms. According to the filing, the ETF will not rely on derivatives and intends to hold actual SEI tokens in custody.
Custodians Include BitGo and Coinbase Custody
The filing names BitGo Trust Company, Inc., and Coinbase Custody Trust Company, LLC as the fund’s designated custodians. These entities will be responsible for securely holding the SEI tokens. While not backed by the Federal Deposit Insurance Corporation (FDIC), both custodians maintain insurance policies through private providers to mitigate risk.
The ETF structure allows investors access to SEI through a standard brokerage account without managing private keys or navigating the complexities of blockchain-based ownership. The fund’s design focuses on direct token exposure and staking participation while complying with existing regulatory frameworks.
Staking Feature Integrated into Investment Strategy
The Canary Staked SEI ETF staking mechanism aims to validate transactions on the SEI Network through proof-of-stake (PoS) consensus, thereby generating additional SEI as staking rewards. This dual-purpose strategy positions the ETF to deliver exposure to SEI price movements along with the potential for extra yield.
Canary Capital has filed an S-1 registration statement with the U.S. SEC for the launch of the Canary Staked SEI ETF, an exchange-traded product designed to track the price of SEI and earn additional SEI through participation in the network’s PoS mechanism. Custody will be…
— Wu Blockchain (@WuBlockchain) April 30, 2025
The staking process will adhere to regulatory guidelines. The trust will work with established validators to engage in staking. All staking activities will be conducted under the oversight of the fund’s custodians to ensure asset security.
Strategic Expansion of Canary Capital’s Crypto ETF Line
This ETF marks Canary Capital’s first application centered on SEI and adds to its growing list of crypto-based investment products. The firm previously filed for a similar staked ETF focused on TRX, signaling a broader initiative to offer staking-enabled crypto ETFs.
The proposed SEI ETF seeks to reduce entry barriers for traditional investors seeking exposure to digital assets. The fund intends to simplify the investment process by combining direct token holding with staking while aligning with evolving regulatory requirements. Approval from the SEC is pending.
