EddieJayonCrypto
24 Apr 25
Investment manager Canary Capital has registered a statutory trust in Delaware to launch a staked Sei (SEI) exchange-traded fund (ETF), marking the initial step toward filing a Form S-1 with the US SEC. This follows a recent filing for a staked Tron (TRX) ETF and signals Canary's broader push into c...
Canary Capital has taken a significant step by registering a statutory trust in Delaware as the foundation for launching a staked Sei (SEI) exchange-traded fund (ETF). The firm's next move is to file a Form S-1 with the US Securities and Exchange Commission (SEC), marking its broader ambitions in the crypto ETF space, which includes assets like Tron, Pudgy Penguins, Axelar, Solana, and XRP.Unlike traditional ETFs that solely track price movements, a staked SEI ETF aims to combine market exposure with staking rewards, offering investors the potential for passive income. This approach is innovative but faces regulatory hurdles, as the SEC has historically approached staking ETFs cautiously, often leading to prolonged review periods. Canary’s SEI ETF proposal is likely to encounter similar scrutiny.Institutional interest in Sei is growing steadily. For instance, World Liberty Financial has accumulated approximately 5.9 million SEI tokens, valued around $1.1 million, signaling increased confidence among large investors. Additionally, the recent formation of the Sei Development Foundation aims to bolster the protocol’s growth and visibility in the US, supporting developers and ecosystem builders.Despite these positive developments, SEI’s market performance has been challenging. Over the past year, the token’s price has declined by over 70%, trading at around $0.19 at the time of reporting. Moreover, its Total Value Locked (TVL)—a key metric indicating decentralized finance activity—has dropped by 8.3%, currently standing at $382 million.Canary Capital’s initiative follows its recent filing of a staked Tron ETF and signals a strategic push into altcoin-based ETFs. While the market and institutional narrative around SEI grow, regulatory approval remains uncertain, with the SEC expected to extend its review period well into 2025 for staking-related ETFs.Investors should consider the evolving regulatory landscape and the token’s recent price volatility when evaluating the potential of a staked SEI ETF. This development highlights the growing intersections between crypto innovation and traditional financial product structures, promising new opportunities and challenges in the investment landscape.