- 21Shares filed a Form S-1 for a US spot SEI ETF that tracks a CF Benchmarks index and names Coinbase Custody as custodian.
- The trust may stake a portion of SEI at the sponsor’s discretion and will support both cash and in-kind creations and redemptions.
21Shares submitted a Form S-1 on August 28 for the 21Shares SEI ETF, seeking approval to list a US exchange-traded product that holds Sei’s native token and tracks its spot price. The preliminary filing did not specify an exchange or ticker.
CF Benchmarks selected for SEI pricing while Coinbase Custody appointed token custodian
The fund is structured as a passive vehicle designed to mirror SEI’s price without leverage or derivatives. Net asset value would be calculated daily using the CF SEI-Dollar Reference Rate – New York Variant administered by CF Benchmarks, which aggregates executed spot trades across constituent exchanges to produce a representative USD rate. All SEI held for the trust will be safeguarded by Coinbase Custody.
The sponsor states that the trust may seek to reflect rewards from staking a portion of its SEI holdings if, in the sponsor’s judgment, it can do so without creating undue legal or tax risks. The filing notes that no determination has been made and that the sponsor could also consider liquid staking tokens, again subject to regulatory and tax considerations.
Cash and in-kind creations routed through SEI counterparties under sponsor instruction
Authorized participants will be permitted to create and redeem shares in cash or in kind. For cash transactions, a designated SEI counterparty will be instructed to purchase or sell SEI at the benchmark price used for NAV calculation, with trading costs and slippage borne by the authorized participant. In-kind transactions will involve direct delivery of SEI between the participant and the trust’s custodian.
The filing outlines a unitary sponsor fee charged as a percentage of NAV, payable weekly in SEI and accruing daily. The specific fee rate was not disclosed in the preliminary prospectus.
The sponsor agrees to cover ordinary operating expenses from this fee while extraordinary items remain the responsibility of the trust. Because fees are paid in SEI, the amount of SEI represented by each share is expected to decline over time.
Operationally, the trust may hold limited SEI and cash balances with a prime broker, identified as an affiliate of the custodian, to facilitate cash creations and redemptions or to meet expenses not covered by the sponsor fee.
The filing also references a post-trade financing arrangement with Coinbase Credit that could allow short-term borrowing of SEI or cash for settlement needs.
As a grantor trust, the vehicle is not registered under the Investment Company Act of 1940 and is not regulated by the CFTC as a commodity pool. The prospectus emphasizes the risks inherent in direct SEI exposure and notes the issuer’s status as an emerging growth company under the JOBS Act.
At the time of reporting, Sei (SEI) is trading at $0.294762 USD, reflecting a –0.101% decline from the previous close. During the past 24 hours, the intraday high reached $0.30937 USD and the low touched $0.292958 USD.
