Canary Capital Registers Staked SEI ETF in Delaware, Reflecting Growing Institutional

Canary Capital, a prominent investment manager, has officially registered a statutory trust for a staked Sei (SEI) exchange-traded fund (ETF) in Delaware. This marks an important first step toward the potential launch of the product, which aims to provide investors with passive income through staking rewards alongside market exposure.

The trust registration, filed under file number 10171975 on April 23, follows closely on the heels of Canary's April 18 filing for a similar ETF based on Tron (TRX). In addition, the firm is pursuing ETF registrations for other popular altcoins, such as Pudgy Penguins (PENGU), Axelar (AXL), Solana (SOL), and XRP, signaling a significant expansion into crypto-based investment products.

A staked SEI ETF would function similarly to traditional ETFs, tracking the price of SEI while also offering investors the opportunity to earn staking rewards. However, this staking feature has yet to be approved for any spot crypto ETFs in the United States. The SEC's caution regarding staking in ETFs is evident, especially after the withdrawal of several staking ETF proposals last year.

Despite this, there has been a shift in the regulatory landscape, with a more pro-crypto administration in place. This has encouraged issuers to submit new proposals. For instance, Franklin Templeton filed an S-1 in February for a Solana (SOL) ETF with staking provisions, and the NYSE is seeking SEC approval on behalf of Grayscale to add staking to its spot Ethereum (ETH) ETFs. However, the SEC has extended its decision deadline from April 17 to July 2025, suggesting that Canary Capital's SEI ETF may face a lengthy review process.

Despite the uncertainty surrounding approval, the trust registration comes at a time of increased institutional interest in Sei. Notably, World Liberty Financial (WLFI) has accumulated 5.9 million SEI, valued at approximately $1.1 million, which has fueled optimism about the potential of the Sei ecosystem. As one user on X (formerly Twitter) pointed out, "SEI isn’t just making promises—it’s taking action, and institutional players are beginning to pay attention."

Additionally, the Sei Foundation has been strengthening its position in the U.S. with the launch of the Sei Development Foundation on April 2. This initiative aims to boost the growth and visibility of the Sei protocol while providing vital support to developers within its ecosystem.

However, despite these promising developments, SEI has faced a tough market environment. Over the past year, the altcoin has depreciated by 70.3%, and recent data from BeInCrypto shows a 3.2% decline in the token's value within the past 24 hours. As of the latest report, SEI is trading at $0.19.

Sei’s Total Value Locked (TVL) has also seen a decrease, following a recent all-time high. DefiLama data reveals that the TVL has dropped by 8.3%, currently standing at $382 million.