21Shares, a Swiss-based crypto investment company, has filed an S-1 registration with the SEC to establish the 21Shares SEI ETF, a passive fund tracking the CF SEI-Dollar Index. If regulatory conditions permit, the fund can reflect staking rewards.
SEI’s price reacted positively in the short term, while technical sentiment leans toward a rebound from support levels.
Fund Will Give SEI’s Staking Rewards
According to the SEC Filing S-1, the 21Shares Sei (SEI) ETF is a passive fund that aims to track the CF SEI-Dollar Reference Rate (New York Variant) from CF Benchmarks. The ETF does not use leverage or derivatives; its creation/redemption mechanism can be done in cash or in-kind. Coinbase Custody has been appointed as the SEI custodian.
A key distinction is that the fund may reflect rewards from staking a portion of SEI. This is only possible if the sponsor determines there is no legal or tax risk, including consideration of using LSTs, thereby maintaining grantor trust status. In other words, the “staking” component is optional and dependent on regulatory approval.
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Notably, the SEC has repeatedly delayed decisions on allowing staking features in Grayscale’s spot ETH funds, with the final deadline expected in October 2025. This signals that any altcoin ETF seeking to integrate staking “yields” will likely face similarly rigorous scrutiny. Therefore, although 21Shares has included the staking option on paper, the probability of implementation at listing is low unless further SEC guidance emerges.
Previously, CBOE filed the Canary Staked SEI ETF 19b-4 with the U.S. SEC. The SEC delayed 21Shares’ XRP ETF filing, despite growing optimism around regulatory developments and recent market enthusiasm.
SEI Price Up 3.33%
SEI trades around $0.30 at the time of writing, up 3.33% for the day. It has a market cap of approximately $1.82 billion and 24-hour trading volume above $210 million. This scale is sufficient for a specialized ETF to attract additional institutional flows, favoring assets wrapped in listed structures.
From a technical perspective, analysts on X note that SEI has bounced from a key support area, confluencing with the lower boundary of a triangle/“bullish pennant” pattern, with target references around $0.345, and—if a strong breakout occurs—potentially toward $0.60.
“SEI bounced back from a crucial support level and is likely to close a strong week.” Michaël van de Poppe commented
Other views highlight that SEI is consolidating above the $0.29 zone, suggesting the potential to maintain a bullish structure. This remains a scenario target, not a commitment; price may fluctuate widely before establishing a clear direction. Investors should combine risk management with invalidation levels rather than chasing headlines.
source : https://beincrypto.com