New US Crypto ETF Soon? Looking at the Latest News from SEI Crypto

The US crypto investment landscape might soon witness a significant addition. Canary Capital has officially registered a statutory trust in Delaware for a staked SEI exchange-traded fund (ETF), bringing renewed attention to SEI Crypto and its broader ecosystem. 

While the move does not guarantee approval from the Securities and Exchange Commission (SEC), it marks a crucial first step in potentially launching the first staking-based ETF for the Sei blockchain.

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Canary Capital’s Trust Filing and What It Means for SEI Crypto

Filed on April 23, the new trust registered under file number 10171975 represents Canary Capital’s strategic interest in developing crypto-based ETFs, including SEI Crypto. This follows a similar filing for a Tron (TRX) ETF just days earlier and aligns with the firm’s broader plans, which also involve assets like XRP, Solana (SOL), and Axelar (AXL).

The proposed SEI ETF would not only mirror the asset’s price but also include staking rewards, offering investors the chance to earn passive income. This kind of innovation sets it apart from traditional ETFs, but it also poses challenges in securing regulatory approval particularly given the SEC’s historical hesitance regarding staking in ETF structures.

Still, Canary Capital is not alone in its pursuit. Other major players such as Franklin Templeton and Grayscale have recently filed similar proposals involving staking-enabled ETFs. The market response to these filings shows increased optimism about regulatory openness, especially under a potentially more pro-crypto U.S. administration.

Source: State of Delaware Official Website

Institutional Interest in SEI Crypto Is Growing

While regulatory uncertainties remain, institutional enthusiasm for SEI Crypto continues to rise. Recent data from Arkham Intelligence revealed that World Liberty Financial (WLFI) has accumulated nearly 5.9 million SEI tokens, valued at over $1.1 million. 

This signals that significant capital players are beginning to view Sei as more than just another layer-one protocol.

Additionally, the Sei Foundation has taken meaningful steps to reinforce its presence in the United States. The launch of the Sei Development Foundation on April 2 aims to enhance network development, support builders, and improve the visibility of SEI Crypto across the Web3 ecosystem. 

These efforts come at a time when robust developer support is becoming a key criterion for investors evaluating blockchain projects.

Market Challenges: Can SEI Crypto Bounce Back?

Despite the exciting developments, SEI Crypto has faced substantial headwinds in the market. Over the past 12 months, SEI has dropped more than 70% in value, recently dipping by 3.2% in a single day. As of the time of writing, the token trades at around $0.19.

This price downturn has been reflected in Sei’s Total Value Locked (TVL) as well. After hitting an all-time high last week, the protocol’s TVL has since fallen by 8.3%, currently sitting at $382 million, according to DefiLlama. While TVL fluctuations are not uncommon in DeFi, the decline does highlight investor caution amid macro uncertainty.

Nevertheless, technical analysts and investors are closely watching for signs of recovery, particularly if the SEC becomes more receptive to staking-based ETFs. If approved, a Canary Staked SEI ETF could mark a turning point not just for SEI but for other altcoins seeking mainstream financial products.

Read also : Tokens on Coreum: A Complete Guide for Developers and Builders

What’s Next for SEI Crypto?

Looking ahead, the future of SEI Crypto hinges on several key developments. Chief among them is whether the SEC will approve staking provisions in ETFs—a move that could redefine crypto investing in the U.S. If Canary Capital succeeds, it could pave the way for more innovative crypto ETF offerings.

In the meantime, the Sei Foundation’s grassroots and institutional outreach will likely remain a focal point in sustaining long-term network value. While the token’s price has struggled, the project’s technological and financial developments suggest SEI Crypto may be positioning itself for a stronger second half in 2025.

FAQ

What is SEI Crypto and why is it gaining attention in the ETF space?

SEI Crypto refers to the SEI token, a part of the Sei blockchain ecosystem designed for high-performance trading and decentralized finance. It’s gaining attention because investment firm Canary Capital recently registered a statutory trust for a staked SEI ETF, signaling growing institutional interest in integrating staking rewards with traditional ETF structures.

Will the Staked SEI Crypto ETF offer passive income?

Yes, if approved by the SEC, the Staked SEI Crypto ETF could offer passive income through staking rewards. This would allow investors to gain exposure to the SEI token while also earning yield, a feature not yet available in currently approved U.S. crypto ETFs.

Is SEI Crypto a good investment despite its recent price drop?

While SEI Crypto has experienced a significant drop of over 70% in the past year, ongoing institutional interest and ecosystem development—like the launch of the Sei Development Foundation and proposed ETFs—suggest long-term potential. However, like all cryptocurrencies, it remains a high-risk investment.