Canary Capital Files for First-Ever Staked SEI ETF with SEC

Canary Capital has officially submitted a registration with the U.S. Securities and Exchange Commission (SEC) for what would be the first-ever staked SEI exchange-traded fund (ETF). If approved, the ETF would offer investors both direct exposure to the SEI token and yield generation through staking—marking a bold step in bridging decentralized finance (DeFi) with traditional asset management.

Filed under a Delaware statutory trust structure, the fund’s S-1 registration was submitted on April 30, 2025. The ETF will hold SEI, the native token of the Sei Network, while simultaneously participating in staking protocols to generate additional returns. The filing underscores a growing appetite for structured crypto investment vehicles that do more than track asset prices—they generate passive income as well.

Dual Exposure: Asset Appreciation + On-Chain Yield

According to the SEC filing, the ETF’s net asset value (NAV) will be calculated daily using spot pricing data from CoinDesk Indices. The custodial framework will rely on BitGo Trust Company and Coinbase Custody Trust Company, which are not FDIC-insured but are backed by private insurance policies. These custodians will be responsible for the secure storage and staking of SEI tokens, ensuring compliance with regulatory standards while optimizing yield.

The proposed ETF is designed to provide institutional and retail investors with simplified access to staking rewards. Typically, earning yield on proof-of-stake blockchains like Sei requires users to interact directly with on-chain validators, manage private keys, and assume technical risks. Canary Capital’s approach abstracts these complexities, offering a compliant, professionally managed product with a familiar ETF structure.

The move also highlights the maturation of staking as a credible yield mechanism. As more investors seek alternative sources of passive income in a low-interest environment, staking has emerged as a promising avenue. By integrating staking into a regulated vehicle, Canary Capital is hoping to legitimize and expand the role of DeFi-native rewards in broader financial markets.

Regulatory Watch: A Test Case for On-Chain Integration

The SEC’s response to this filing could set a significant precedent. While the agency has approved several crypto-based ETFs in recent years, it remains cautious around staking, which introduces unique regulatory challenges. These include tax treatment of staking rewards, classification of staking as a service, and security risks related to validator behavior.

Approval of this ETF could signal a shift in how U.S. regulators view the blending of DeFi protocols with traditional finance. Conversely, delays or rejections may reflect continued regulatory hesitation. Analysts expect the SEC’s decision timeline to stretch into Q3 2025.

In the meantime, Sei Network continues to attract developer interest and ecosystem expansion. The recent launch of the Sei Development Foundation and ongoing adoption across DeFi applications strengthen the case for SEI as a core asset in the staking economy. Canary Capital’s filing positions SEI at the center of the next wave of innovation—where passive yield and public markets converge.