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21Shares has filed with the SEC for a Sei ETF, potentially including staking.
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The move is part of a growing wave of altcoin ETF filings.
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SEC has yet to approve staking in ETFs but recent guidance suggests progress.
Details of the Filing
21Shares, a major crypto ETF issuer, submitted paperwork for a new Sei ETF. The fund would track the price of SEI, the native token of the Sei blockchain, and potentially include staking rewards by staking part of the fund’s tokens.
Staking Debate
While staking could enhance returns, the SEC has so far resisted approving staking in ETFs. However, in May, the agency clarified that certain liquid staking activities do not qualify as securities, signaling a possible pathway for approval. Other firms, including BlackRock and Grayscale, are also awaiting decisions on Ethereum ETF staking proposals.
Altcoin ETF Expansion
The application reflects growing momentum for altcoin-based ETFs. Proposals now cover Solana, Dogecoin, XRP, and others, as Wall Street looks to expand beyond Bitcoin and Ethereum. Bloomberg ETF analysts noted that such filings show strong demand among asset managers to diversify product offerings.
Regulatory Landscape
The SEC recently delayed rulings on Bitcoin and Ethereum ETF applications linked to Trump Media’s Truth Social, highlighting the agency’s cautious stance. Still, industry watchers believe staking could eventually be allowed, paving the way for more dynamic ETF products that combine exposure with yield.
