Asset manager 21Shares is pushing the envelope for crypto investments. The company just filed paperwork with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund, or ETF. This fund would track the price of the Sei (SEI) cryptocurrency.
The proposed product, called the 21Shares Sei ETF, aims to give investors direct access to Sei. Sei is the native token of the Sei network. What makes this filing stand out is 21Shares’ plan to also include a staking option. Staking lets investors earn extra returns on their holdings, adding another layer of appeal. This detail was first reported by The Block.
Staking in Crypto ETFs: A Regulatory Hurdle
The idea of staking within crypto ETFs is a sticking point for the SEC. So far, the regulator has not approved any ETF that includes staking. Other big players like Grayscale and BlackRock, along with 21Shares itself, have tried to add staking features to their Ethereum (ETH) ETFs. These applications are still waiting for a green light.
Just today, the SEC again delayed its decision on Grayscale’s application to add staking to its Ethereum ETF. This shows the regulator is very cautious about these income-generating mechanisms. In May, the SEC’s Division of Corporate Finance did say that some liquid staking activities are not considered securities offerings. Analysts saw this as a hopeful sign for the future. However, the authority has not yet given clear rules for putting staking into regulated financial products.
More Altcoin ETFs Knocking on the Door
21Shares’ move to create a Sei ETF is part of a bigger trend. More and more companies are asking the SEC to approve ETFs based on altcoins. This list includes funds linked to Litecoin, Solana, Dogecoin, and XRP, plus many other important tokens.
Fund managers want to offer more than just Bitcoin and Ethereum ETFs. Most of the crypto ETF applications filed so far are for these two major cryptocurrencies. But getting these new funds approved has been slow. Regulatory delays have become a common theme. Even recent applications for Bitcoin and Ethereum ETFs from Truth Social, which is run by Trump Media & Technology Group, also faced delays from the regulator.
Ultimately, the SEC will decide if staking can be part of these new funds. If the 21Shares Sei ETF gets approved, it would be a big deal. It would be the first altcoin ETF to include staking rewards. This could change how big institutional investors get into this part of the market. Many similar proposals for Solana-based products also include staking features.
The final word rests with the U.S. regulator. They are looking at many applications. Meanwhile, investors are showing more and more interest in new ways to get exposure to cryptocurrencies.