In a move to expand crypto-linked investment products, Canary Capital has filed an S-1 with the U.S. Securities and Exchange Commission (SEC) to launch the first-ever exchange-traded fund (ETF) focused on SEI, the native token of the Sei blockchain.
The proposed fund, dubbed the Canary Staked Sei ETF, aims to offer regulated exposure to SEI’s market price, while also earning staking rewards through the network’s proof-of-stake mechanism. If approved, the ETF would be the first to combine SEI price tracking with on-chain yield generation—a notable innovation in ETF design.
According to the filing, the fund’s core goal is to mirror the price performance of SEI, with a secondary objective of enhancing returns via staking incentives earned by helping validate transactions on the Sei blockchain.
This structure highlights the growing institutional interest in combining DeFi features with traditional finance, reflecting a broader trend in bridging regulated markets with blockchain-native functionality.
Staking Comes to ETFs as Altcoin Funds Rise
Staking, which allows holders of proof-of-stake tokens to help secure a network in return for yield, is now crossing into the ETF space via Canary Capital’s SEI proposal.
If approved, the fund would give investors exposure to SEI’s price movements and staking-based rewards, creating a dual-income model within a regulated framework. It also marks another step forward for Canary Capital’s altcoin-focused ETF strategy.
The firm has previously filed for ETFs tied to Litecoin, Sui, and the meme-inspired Pengu token—demonstrating its ambition to offer diversified access to emerging blockchain assets.
SEI, currently ranked as the 85th largest crypto asset by market cap, has seen growing attention. As of the latest CoinGecko data, SEI is trading around $0.225, up 7% in 24 hours, amid renewed interest in Layer 1 networks with staking utility.
Trump-Era Policy Shift Spurs Altcoin ETF Rush
Since President Donald Trump’s return to office under a pro-crypto, anti-regulation stance, asset managers have accelerated efforts to launch new digital asset ETFs.
Under former SEC Chair Gary Gensler, ETF approvals were repeatedly delayed. That changed in early 2024, when the agency greenlit spot Bitcoin ETFs, marking a turning point for institutional crypto access.
Shortly after, Ethereum ETFs were approved—albeit with lower trading volume. These breakthroughs opened the floodgates for altcoin-linked ETFs, with issuers now seeking approval for products tracking Solana, XRP, Dogecoin, and more.
Canary Capital’s latest staked SEI ETF fits squarely within this wave, reflecting rising institutional demand for yield-bearing crypto assets and efforts to capitalize on regulatory momentum.
Quick Facts
- Canary Capital has filed for the first U.S. SEI-based ETF, incorporating staking rewards.
- The ETF offers exposure to SEI’s price and on-chain yield in a regulated wrapper.
- BitGo and Coinbase will serve as custodians for the fund’s digital assets.
- Sei is an EVM-compatible Layer 1 blockchain, optimized for fast, cross-chain transactions.
