21Shares Prepares for SEI Token ETF with SEC Application

Crypto asset manager 21Shares has filed an application with the ￰0￱ and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) tied to the SEI ￰1￱ and Benchmarking According to the S-1 registration filed on Thursday, the ETF will track SEI’s market value using the CF SEI-Dollar Reference Rate, developed by CF ￰2￱ benchmark aggregates pricing data from multiple cryptocurrency exchanges, ensuring standardized ￰3￱ of the fund will be priced daily based on this ￰4￱ ETF is designed as a passive vehicle, meaning it will reflect SEI’s spot price without employing leverage, derivatives, or speculative trading ￰5￱ Custody Trust Company has been appointed to safeguard the fund’s SEI ￰6￱ the SEI Network SEI is the native asset of the Sei Network, a Layer-1 blockchain launched in August ￰7￱ network specializes in high-performance trading infrastructure for decentralized exchanges and ￰8￱ token serves multiple roles, including gas fee payments and governance participation, while also being considered for staking ￰9￱ and Custody Considerations 21Shares stated in the filing that the fund may eventually stake SEI to enhance returns.

However, it emphasized that such a step would only be taken after evaluating potential regulatory, legal, and tax ￰10￱ staking remains under review, the firm has not ruled out exploring liquid staking options in the future if deemed ￰11￱ SEI transactions related to fund operations will be handled by vetted third-party ￰12￱ entities must meet standards of financial strength, regulatory oversight, and settlement ￰13￱ and Redemption Mechanisms Authorized Participants will be able to subscribe or redeem shares either through cash or in-kind ￰14￱ cash transactions, a designated counterparty will convert ￰15￱ into SEI before depositing them with Coinbase ￰16￱ in-kind transactions, SEI tokens will be delivered directly to the Trust, which will then issue corresponding shares after deducting ￰17￱ will return SEI or its cash equivalent, depending on the ￰18￱ dual-structure approach allows flexibility while maintaining regulatory ￰19￱ Capital and Market Launch The filing also revealed that the Sponsor has seeded the ETF with an initial purchase of two shares priced at $50 ￰20￱ affiliate of the Sponsor is expected to acquire additional seed baskets following SEC ￰21￱ cleared, the ETF aims to list under a yet-to-be-determined ticker ￰22￱ the SEI ETF will not fall under the Investment Company Act or CFTC jurisdiction, it will operate within SEC regulatory ￰23￱ offering, unless extended, will remain open for up to three ￰24￱ trading on secondary markets will incur standard brokerage fees.

Disclaimer: This article is provided for informational purposes ￰25￱ is not offered or intended to be used as legal, tax, investment, financial, or other advice