21Shares Files SEC S-1 to Launch SEI ETF With Coinbase Custody

How 21Shares Offers SEI Token Exposure via ETF With Coinbase Custody

It was a major step in the cryptocurrency investment sector as 21Shares, one of the leading crypto asset management companies, has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission to issue the 21Shares SEI ETF. Earlier, 21Shares filed with the SEC to launch the $ONDO ETF. 

The filing will be done on August 28, 2025, representing a critical move in offering institutional and retail investors regulated exposure to the token 

21Shares Files S-1 with US SEC: Details

The S-1 filing with the SEC describes the plan to create a trust that will provide direct exposure to SEI. The company SEI Exchange Traded Fund suggested is a passive fund, which is expected to track the performance of the token without speculative trading processes, leverage, and derivatives.

The value of the fund will be calculated according to the CF SEI-Dollar Reference Rate, which is a pricing index that is computed by CF Benchmarks Ltd., which amalgamates SEI trade data across various exchanges, to provide accuracy and transparency.

Source: 21shares US on X

What Is the Purpose and Objective

The 21Shares SEI ETF has the main goal of offering an easy and controlled way of exposure. The ETF seeks to reflect the SEI crypto price change by following the CF SEI-Dollar Reference Rate and provides an efficient and transparent investment tool to the investor. 

The move is in line with the overall strategy to diversify its range of single-asset crypto investment products to meet the increasing demand for regulated cryptocurrency investment products.

Custody and Security

• In order to provide the safe storage of SEI tokens, 21Shares has appointed Coinbase Custody Trust Company as the custodian of the ETF. 

• Coinbase Custody is a licensed company with a well-established security system, such as cold storage and insurance, to protect the digital assets.

• This joint venture highlights the fact that company is determined to offer a safe investment product to its customers.

Staking Considerations

• The prospectus indicates that the trust may engage in staking activities to earn rewards, contingent upon legal and tax considerations. 

• The company has not yet taken a final stand on staking and the importance of adherence to the regulations in its activities. 

• In case the firm decides to stake, it would seek to increase the returns of the fund, which would be of more value to the investors.

Source: Official SEC website

Seed Funding and Issuance

• During the first stage, the company has decided to buy two shares of the ETF for $50, amounting to $100. 

• Seed investment shows that the firm has confidence in the product and that it believes in the success of the fund. 

• The ETF will provide flexibility and liquidity to investors with the ability of authorized participants to subscribe or redeem shares in cash or in-kind.

Regulatory and Operational Details

• The company SEI ETF will be a Delaware statutory trust and will be regulated under the regulations of the SEC. 

• The trust will not be subject to the Investment Company Act of 1940, which exempts investment companies from some regulatory requirements. 

• This framework enables the ETF to be more efficient and flexible in line with the changing regulatory environment of digital assets.

Significance of This Filing

The company is establishing the path to a regulated product that gives exposure to the SEI token on its Network. The action will likely increase investor trust and expand the range of cryptocurrency investing opportunities. The decision may become a precedent for future cryptocurrency ETFs, as the SEC considers the application, and the regulation process may affect the future of digital asset investments.