21Shares files for Sei ETF with possible staking as SEC reviews altcoin funds

21Shares filed an S-1 registration statement with the Securities and Exchange Commission on Thursday for a Sei ETF as the regulatory agency continues to review several applications for altcoin exchange-traded funds.

The firm also said in its prospectus that it would like to explore a staking SEI. 21Shares said it aimed for the proposed ETF to "reflect rewards from staking a portion" of the fund's SEI tokens although the SEC has largely yet to approve of staking for ETFs.

Other proposals to add staking to spot Ethereum ETFs issued by Grayscale, BlackRock, and 21Shares have yet to secure approval. On Thursday, the SEC delayed making a decision on Grayscale's request to add staking to its ETH fund.

21Shares' proposed fund, dubbed 21Shares Sei ETF, seeks to offer direct exposure to the price of SEI, the native cryptocurrency of the Sei network. 

The number of applications for altcoin-based ETFs is piling up at the SEC with proposals for funds tracking Litecoin, Solana, Dogecoin, XRP, and others all awaiting approval.

The SEC recently delayed approving Bitcoin and Ethereum exchange-traded funds issued by Truth Social, a social media platform operated by Trump Media & Technology Group.

In terms of the SEC allowing staking of ETFs, Nate Geraci, president of NovaDius Wealth, said earlier this month he thought the agency is closer to making a ruling on the matter. That came after the SEC said certain liquid staking activities do not involve securities.

In May, the SEC's Division of Corporation Finance said that certain blockchain staking activities don't involve the offering of securities, which some took to mean that staking could be allowed in crypto ETFs.

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