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The U.S. Securities and Exchange Commission (SEC) has formally acknowledged a filing from the Cboe BZX Exchange seeking approval to list and trade the Canary Staked SEI ETF, a first-of-its-kind product offering U.S. investors regulated exposure to staked SEI tokens. The acknowledgment, issued on Sept. 8, begins a public comment period and starts the clock on the SEC’s review process.
Under current rules, the SEC has an initial 45-day period to approve, deny, or extend the decision on the Canary Staked SEI ETF, with the timeline stretching up to 240 days if additional deliberation is required.
According to the filing, the proposed ETF would be structured as a Delaware statutory trust and managed by Canary Capital Group LLC. Cboe BZX Exchange argued that the product aligns with the Securities Exchange Act and should be evaluated on the same basis as recently approved spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds.
“If approved, the Canary Staked SEI ETF would mark a significant expansion of regulated digital asset offerings,” said Michael Carter, a senior analyst at ETF Store. “It signals that staking-based products are finally entering the mainstream conversation.”
The SEC’s acknowledgment comes on the heels of a registration filing Canary Capital submitted on April 30. The product now faces direct competition from 21Shares, which filed its own S-1 with the SEC on Aug. 28 for a separate SEI-focused ETF.
The 21Shares product, naming Coinbase as its custodian, proposes to track SEI’s spot price and may integrate staking features, depending on regulatory clearance. This parallel effort highlights growing interest among issuers to capitalize on the momentum surrounding SEI and its staking model.
“The fact that multiple firms are vying for approval shows institutional demand is real,” — Sarah Johnson, Head of Digital Assets at Artemis Advisory. “Investors want diversified exposure beyond Bitcoin and Ethereum, and the Canary Staked SEI ETF could be a test case for how the SEC handles that shift.”
The launch of the Canary Staked SEI ETF comes amid growing activity in SEI markets. At the time of writing, SEI trades at $0.32, supported by a strong technical base in the $0.26–$0.28 range. Analysts note that the next resistance levels lie between $0.32–$0.33, with additional hurdles at $0.36 and $0.39.
According to data from crypto.news, a breakout above $0.39 could pave the way toward $0.43, offering near-term upside for investors tracking the Canary Staked SEI ETF approval process. Rising volumes and stable liquidity have also supported bullish sentiment, though traders remain cautious given broader crypto market volatility.
If approved, the Canary Staked SEI ETF would be the first U.S.-listed exchange-traded product to directly incorporate staking into its structure. This raises important regulatory and operational questions, including how staking rewards are treated under securities law and whether custodians can adequately manage the risks.
The SEC has traditionally been cautious about staking, citing concerns around investor protection and custody standards. However, recent approvals of spot Bitcoin and Ethereum ETFs have signaled a willingness to broaden the scope of regulated digital asset products.
“Approving the Canary Staked SEI ETF would set a precedent,” — David Lee, Policy Fellow at the Blockchain Association. “It could pave the way for a new generation of staking-based ETFs, but it also forces regulators to clarify how these products interact with existing securities frameworks.”
The SEC’s review of the Canary Staked SEI ETF represents a pivotal moment for crypto ETFs. With competing filings already in play and investor appetite for staking exposure growing, the decision will shape how innovative digital asset products enter U.S. markets.
For now, the public comment period offers stakeholders from institutional investors to retail traders which is an opportunity to weigh in. A final ruling, whether in 45 days or after several extensions, will likely influence not only SEI’s trajectory but also the broader debate over how staking fits into regulated finance.
As anticipation builds, the Canary Staked SEI ETF stands at the center of a debate that could redefine the boundaries of crypto investment vehicles in the United States.
