Canary Capital has filed Pre-Effective Amendment No. 2 to its S-1 registration statement for the proposed Canary Staked SEI ETF, a spot product designed to offer investors exposure to SEI while earning additional tokens through staking. The September 15 filing outlines a Delaware statutory trust structure that will list on the Cboe BZX Exchange, pending regulatory approval. The fund will use BitGo Trust Company for custody and the CoinDesk SEI Benchmark Rate for valuation. The registration statement remains preliminary, and the SEC has not yet declared it effective.
Canary Capital has submitted Pre-Effective Amendment No. 2 to its S-1 registration statement for the proposed Canary Staked SEI ETF. The September 15 filing outlines a spot exchange-traded product that would also seek staking rewards, designed to list on the Cboe BZX Exchange pending regulatory approval.
The proposed fund will be organized as a Delaware statutory trust under the sponsorship of Canary Capital Group LLC. The primary objective is to provide investors exposure to SEI held by the trust, while a secondary aim involves obtaining additional SEI through the network’s proof-of-stake validation process.
The CoinDesk SEI Benchmark Rate 60m NY Rate will derive the ETF’s net asset value. This rate represents a 60-minute time-weighted average price using SEI traded on leading exchanges, providing a reference price for valuation purposes.
Staking forms a core component of the proposed structure, with the Sponsor expected to stake nearly all the Trust’s SEI. Exceptions include tokens used for redemptions, covering expenses, or maintaining liquidity and asset protection. The Trust will employ one or several staking providers to handle transaction validation rather than operating validator nodes directly.
Under this arrangement, the Trust will receive rewards for its staked SEI, though staking fees will reduce the amount of rewards received. This combination of spot exposure and staking-generated SEI supports the fund’s additional investment goal.
BitGo Trust Company will serve as custodian for the Trust’s SEI holdings. U.S. Bank will act as cash custodian, while U.S. Bancorp Fund Services provides administration and transfer-agent services.
Share creation and redemption will occur in baskets of 10,000 shares through authorized participants. These participants will deposit either SEI or cash when creating shares and receive SEI or cash upon redemption. The filing confirms the registration statement remains preliminary and subject to change, with securities unavailable for sale until the SEC declares it effective.
SEI serves as the native token of a Layer 1 network featuring fast transactions, decentralized finance, trading applications, and tokenization. The token supports proof-of-stake validation, governance, and transaction fees on the network. No confirmed launch date has been provided for the ETF.
