Canary Capital Seeks Approval for First Spot SEI ETF With Staking Feature

Canary Capital has submitted paperwork to the U.S. SEC aiming to launch what may become the first spot ETF focused on Sei (SEI), a cryptocurrency tied to the Sei blockchain.

This proposed ETF would stand out by including a staking feature, potentially allowing it to generate passive returns for investors.

The fund is designed to track SEI’s market value directly, with custody managed by BitGo and Coinbase. It would handle subscriptions and redemptions in cash rather than through direct crypto transfers, aligning with how current spot Bitcoin and Ethereum ETFs operate in the U.S. market.

SEI powers the Sei network, a Layer 1 blockchain that leverages the Cosmos SDK and supports Ethereum-compatible smart contracts. Known for its speed and cross-chain functionality, Sei blends the familiarity of Ethereum’s development environment with performance goals akin to Solana.

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Canary Capital has been actively expanding its crypto ETF offerings, recently proposing funds linked to assets like Sui, Litecoin, Hedera, Pengu, and Tron — the latter also including a staking component.

In a related move, the Sei Foundation recently introduced the Sei Development Foundation, an initiative aimed at boosting the blockchain’s ecosystem and encouraging broader crypto adoption in the United States.

Alexander Stefanov