SEC Begins Review of Cboe BZX Proposal for First U.S.-Listed Staked SEI ETF

SEC starts review for the first US-listed ETF that offers exposure to staked SEI tokens.

Canary Capital aims to launch a SEI ETF with staking rewards through Cboe BZX Exchange.

Competing SEI ETF filings reflect rising interest in crypto assets with staking features.

A rule change proposal by the Cboe BZX Exchange has been formally accepted by the U.S. Securities and Exchange Commission (SEC). This filing, dated September 8, seeks approval to list and trade the Canary Staked SEI ETF. The ETF would be the first in the United States to provide exposure to staked SEI tokens. This action opens the standard public comment period and triggers the official review process.

The SEC typically has 45 days to respond. However, it may extend this window to a maximum of 240 days. The acknowledgment follows an earlier S-1 registration form submitted by Canary Capital on April 30. This move signals increasing institutional interest in staking-based digital assets.

ETF Structure and Market Strategy

The proposed ETF is structured as a Delaware statutory trust. Canary Capital Group LLC is listed as the sponsor. Cboe BZX claims the fund aligns with the Securities Exchange Act. The exchange also compares the product to spot Bitcoin and Ethereum ETFs that the SEC recently approved.

The ETF plans to use CF Benchmarks for price tracking and Coinbase Custody Trust Company for asset custody. If approved, this would mark a significant step in offering staking rewards through an exchange-traded product in the U.S. market. The product aims to provide exposure to both the price and yield of staked SEI tokens.

Competing Filings and Market Reactions

Another firm, 21Shares, submitted its own S-1 filing on August 28. That filing also targets SEI exposure, with Coinbase as the custodian. It may include staking features, depending on regulatory guidance. Both filings highlight growing interest in SEI as a staking-enabled crypto asset.

Meanwhile, SEI's market performance continues to attract attention. As of September 8, the token trades at $0.31. The asset saw a 4.66% increase in the last 24 hours and a 53.23% gain over 90 days. Market analysts are closely watching key resistance levels at $0.33 and $0.39.

Implications for Crypto ETF Landscape

The Canary proposal introduces a new model by integrating staking into an ETF structure. If approved, this could expand investor access to staking yields and capital gains in one vehicle. It may also set a precedent for similar products across other networks.

The filing comes at a time of increased interest in diversified crypto investment products. Industry analysts note that the ETF could attract both retail and institutional investors. The outcome may influence future SEC decisions on staking-based ETFs in the U.S.