Altcoin ETF competition intensifies as 21Shares submits SEI filing for a staking rewards-focused ETF
The SEI Network, a high-speed blockchain designed for trading applications, is making waves in the cryptocurrency market. As the native token of this network, SEI currently ranks as the 74th largest cryptocurrency with a market cap of approximately $1.82 billion.
The SEI Network distinguishes itself from general-purpose blockchains like Ethereum, focusing on decentralized exchanges and high-frequency trading applications. One of the key features of SEI is staking, a process where cryptocurrency is locked up to help secure the network. Current staking rewards for SEI offer approximately 5-6% annually across various platforms.
The growing interest in SEI is evident in the recent filing for an Exchange-Traded Fund (ETF) tracking the SEI token. Swiss crypto asset manager 21Shares submitted this paperwork to the SEC on August 28, 2025. The 21Shares SEI ETF aims to track the price of SEI tokens held in the fund and includes a secondary goal of earning additional SEI tokens through staking.
However, the path to an SEI ETF is not without challenges. The staking component of ETFs presents potential legal, regulatory, or tax risks, and 21Shares has not yet decided if staking can legally work within an ETF structure. Industry experts, however, give Litecoin, Solana, and XRP ETFs high approval odds.
The race for SEI ETFs is heating up, with Canary Capital filing for its own SEI ETF in late April 2025. Similar to 21Shares, Canary Capital plans to include staking rewards as a core feature, with custody split between BitGo Trust Company and Coinbase Custody Trust Company.
If approved, SEI ETFs would provide traditional investors with an opportunity to buy exposure to the blockchain through regular brokerage accounts, removing the complexity of managing crypto wallets or dealing directly with exchanges.
The SEI Network's total value locked (TVL) has reached over $669 million, with active protocols including Yei Finance and DragonSwap handling significant trading volume. As of the article's publication date, the SEI token trades around $0.30, though this is 73% below its March 2024 peak of $1.14.
The development of SEI ETFs underscores the growing institutional interest in trading-focused blockchains, with first-mover advantage potentially significant in capturing market share. The SEC's recent guidance stating that most crypto staking on proof-of-stake blockchains does not fall under securities laws further bolsters this trend. Multiple crypto ETF applications now face SEC decision deadlines in October 2025, signifying a larger push for altcoin ETFs beyond Bitcoin and Ethereum.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
