- 21Shares pushes for staking approval with Sei ETF proposal.
- SEC delays decisions on staking ETFs, leaving investors uncertain.
- Sei ETF aims to offer exposure, rewards through staking SEI.
21Shares has made a bold move by filing an S-1 registration statement with the Securities and Exchange Commission (SEC) for its proposed Sei ETF. The new fund will offer direct exposure to SEI, the native currency of the Sei network, and present a staking mechanism among its investors.
The regulatory process of the altcoin ETFs by the SEC has not been finalized, and the agency has yet to approve an ETF that involves staking rewards. Nonetheless, 21Shares is agitating the shift, and its suggested Sei ETF would represent a stake incentive of a share of SEI tokens in the fund. This is even though past applications to add staking to Ethereum ETFs, even by large participants such as Grayscale and BlackRock, have been stalled or rejected.
In its filing, 21Shares clearly foreshadowed its plans to consider staking in the proposed fund. The company is seeking to provide crypto investors with not only price exposure to SEI but also the added value of staking rewards. This new strategy may transform the way investors interact with cryptocurrency funds, and its application by the SEC is still unclear.
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SEC Delays Decisions on Staking, but a Ruling May Be Near
The SEC has been facing a surge of applications for altcoin ETFs, with firms proposing funds based on popular cryptocurrencies like Litecoin, Solana, Dogecoin, and XRP. However, the regulatory body has not green-lighted any of these proposals.
In recent years, the SEC has been selective in its approach to staking in its Ethereum fund. It has postponed deciding on the case submitted by Grayscale, which indicates the agency’s hesitation to move on the issue.
Despite these setbacks, experts believe the SEC is moving closer to making a final decision on staking within ETFs. Nate Geraci, president of NovaDius Wealth, has noted in recent months that the SEC might soon hand down a decision, particularly since the Division of Corporation Finance had made clear that some blockchain staking offerings were not securities offerings.
21Shares’ filing comes at a time when the conversation surrounding cryptocurrency ETFs and staking is intensifying. The company’s efforts to include staking rewards in the Sei ETF could set a new precedent for future crypto-based investment products, if it ultimately receives approval from the SEC.
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