- Canary Capital proposes an ETF that offers direct SEI exposure.
- The fund will earn staking rewards through Sei Network validation.
- SEI tokens are held securely by BitGO and Coinbase with daily valuations based on market pricing.
Canary Capital has filed an S-1 registration with the US Securities and Exchange Commission (SEC) for what could be the first spot exchange-traded fund based on SEI, the native cryptocurrency of the Sei Network. The ETF will offer investors direct exposure to SEI’s market value and will include a unique staking feature designed to boost returns.
Staking enables the fund to earn additional tokens by participating in the Sei Network’s proof-of-stake system. Through the system, the Trust will help secure the blockchain by validating transactions in exchange for staking rewards, which will be accumulated by the fund.
This allows investors to earn a passive income beyond just the price appreciation of SEI. This removes the complexities of managing staking mechanics directly and makes it easier for traditional investors to access blockchain-based yields through a ETF structure.
Related: Staking vs. Saving
The SEI tokens will be securely custodied by BitGo Trust Company and Coinbase Custody Trust Company on behalf of the fund. The fund’s net assets will be valued based on the market price of SEI as calculated by CoinDesk Indices. The pricing methodology will enable investors to track the net asset value of the ETF daily.
The Sei Network is a blockchain designed to power high-speed and efficient infrastructure for applications such as decentralised finance (DeFi), and Non-Fungible Tokens (NFTs). SEI is used for multiple purposes within the ecosystem such as to pay for transaction fees within the network, to validate transactions and to participate in governance decisions.
Related: On the Radar – Coins to Watch: SUI and SEI
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