21Shares has put forward a request to authorities in the United States to establish a fund designed to mirror the market performance of SEI, which is the digital currency powering the Sei blockchain.
The submission, which was officially lodged with the U.S. Securities and Exchange Commission (SEC) on August 28th, details a strategy involving the utilization of pricing information sourced from CF Benchmarks, an entity that aggregates data from various cryptocurrency exchanges to deliver a standardized reference rate.
Should the plan receive the green light, the proposed fund could become one of the first within the U.S. to provide investors with exposure to SEI through a readily tradable exchange-traded product. At present, U.S.-based crypto exchange-traded funds (ETFs) primarily focus on tracking the performance of Bitcoin
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The Sei blockchain network went live in August of 2023. Its fundamental architecture is tailored to provide robust support for decentralized exchanges and various online marketplace platforms. The SEI token serves as the utility token within the ecosystem, facilitating transaction fee payments and enabling community-driven governance mechanisms.
According to documentation provided in the application, Coinbase
$2.54B
Custody would take on the role of custodian, responsible for the secure and reliable storage of the SEI tokens related to the ETF.
21Shares also raised the potential prospect of staking the involved tokens to generate supplementary revenue streams. However, it was clarified that this particular aspect remains under active evaluation, primarily due to various unresolved legal, tax-related, and regulatory considerations that need to be carefully assessed.
Through a post shared on X on August 28th, 21Shares framed the submission as a critical step toward broadening accessibility to the Sei network for investors through established and compliant investment frameworks.
The SEC recently adjusted the maximum allowed number of options contracts for ETFs. Want to know the new limit? Find out more in our complete coverage.