21Shares, a leading cryptocurrency exchange-traded product (ETP) issuer, has filed an S-1 application with the U.S. Securities and Exchange Commission (SEC) on August 28, 2025, to launch the first-ever exchange-traded fund (ETF) for the SEI token. The filing marks a significant step towards bringing regulated altcoin investment products to traditional markets.
The proposed SEI ETF aims to provide investors with exposure to the SEI token's performance, tracked via the CF SEI-Dollar Reference Rate. A notable innovative feature included in the filing is the potential for staking rewards distribution as part of the fund's returns, which would offer a yield component to investors within a regulated structure. Coinbase Custody has been assigned as the token custodian for the fund, providing a safeguard for investors.
21Shares co-founders Ophelia Snyder and Hany Rashwan are leading this initiative. Ophelia Snyder, Co-Founder and President of 21Shares, stated: "As we innovate in the crypto ETP space, our focus on the SEI token represents a significant step forward for single-asset ETFs." The filing has been confirmed by the official accounts of the Sei Network.
The application is now pending review and approval by the SEC. The outcome could set a precedent for regulatory acceptance of other altcoin-based financial products in the U.S., following the historical patterns of Bitcoin and Ethereum ETF approvals. While no specific initial capital commitments were disclosed, the filing could significantly influence SEI's market dynamics, potentially increasing institutional engagement, liquidity, and trading volumes for the token.