SEC reviews altcoin ETF! 21Shares applies for SEI fund and plans to stake, attracting follow.

The U.S. Securities and Exchange Commission (SEC) is recently accelerating the review of multiple altcoin exchange-traded fund (ETF) applications, including the registration statement for the SEI ETF recently submitted by 21Shares. The fund plans to track the price of the Sei network’s native token SEI and could become one of the first altcoin funds to attempt to introduce a staking mechanism in U.S. ETFs.

This move not only makes SEI the focus of the market but also brings the regulatory issues of ETF staking back to the forefront.

21Shares SEI ETF: Track Price + Stake Yield

21Shares has submitted an S-1 registration statement to the SEC on Thursday, applying to launch the 21Shares Sei ETF, and explicitly stated in the prospectus that it will explore using a portion of SEI tokens for staking, in order to enable the fund to reflect the additional returns generated by staking.

However, the SEC has not yet approved any cryptocurrency ETFs that include staking features, and there is still uncertainty about whether the plan can be implemented.

The ETF staking regulatory controversy is still ongoing

Currently, the proposals from Grayscale, BlackRock, and 21Shares to increase the staking functionality for spot Ethereum (ETH) ETF have not been approved.

This Thursday, the SEC delayed its decision again on Grayscale’s introduction of staking features in its ETH fund.

It is worth noting that in May of this year, the SEC’s Division of Corporation Finance stated that certain liquidity staking activities do not involve the issuance of securities, and the market interpreted this as potentially giving the green light for ETF staking. However, the regulatory level still requires a clear legal framework and implementation rules.

alts ETF sign up craze heats up

In addition to the SEI ETF, the SEC is currently reviewing multiple ETF applications based on altcoins, including funds tracking assets such as Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), and Ripple (XRP).

This wave of applications reflects the accelerating integration of traditional financial institutions with the crypto market, especially against the backdrop of the approval of spot Bitcoin (BTC) and Ethereum ETFs, with market expectations for more crypto assets entering the ETF product line continuously heating up.

The Market Potential and staking Advantages of SEI

The Sei network, as a public chain focused on high-performance trading applications, has seen its application scenarios continuously expand in decentralized exchanges (DEX) and the derivatives market in recent years.

If the 21Shares SEI ETF is successfully approved and introduces a staking mechanism, investors will be able to simultaneously gain capital gains from the price fluctuations of SEI, as well as passive income generated from staking. This offers dual appeal for long-term holders and institutional funds.

Conclusion

21Shares applies for a SEI ETF and plans to introduce staking features, marking a move towards higher returns and greater diversification for altcoin ETF products. However, the SEC’s regulatory stance on ETF staking remains unclear, and the approval results over the next few months will become the focus of market attention.

If the SEI ETF is approved, it will not only bring more capital inflow to the Sei network but may also open the door for staking services of other altcoin ETFs. For more real-time quotes and in-depth analysis, please follow the official Gate platform.