The SEI token got a major boost this week after asset manager 21Shares filed for a spot SEI ETF with the U.S. Securities and Exchange Commission (SEC). The news sent SEI’s price spiking to $0.31, fueling optimism among analysts that this could be the start of a much larger rally.

Immediate Market Reaction and Analyst Outlook

The filing created an instant buzz in the market. SEI is currently trading near $0.30, up 3.33% on the day, with a market cap of $1.82 billion.

Analysts are now watching key levels:

• Short-Term Target: Popular analyst Ali Martinez notes that as long as SEI holds $0.288 as support, it could rally to $0.345.
• Long-Term Potential: Others believe strong bullish momentum could propel SEI back to its 2024 high of $0.70 and even toward $1.

This optimism is backed by strong fundamentals. In June, SEI saw a staggering 368% growth in DeFi fee revenue, and its Total Value Locked (TVL) surged to $611 million.

Inside the 21Shares SEI ETF Proposal

The S-1 filing with the SEC reveals key details about the proposed fund:

• Passive Strategy: The ETF is designed to track the CF SEI-Dollar Reference Rate.
• No Leverage: The fund will not use leverage or derivatives.
• Custody: Coinbase Custody will serve as the fund’s custodian.

Most notably, the filing includes a provision for staking rewards. This means the ETF could stake a portion of its SEI holdings to generate additional yield for investors—a major differentiator that could attract more interest.

The Staking Hurdle: Regulatory Scrutiny Ahead

However, the staking feature faces a significant regulatory hurdle. The SEC has historically been cautious about allowing staking in crypto ETFs.

A final ruling on staking in Grayscale’s spot Ethereum funds isn’t expected until October 2025. This indicates that any altcoin ETF proposing staking rewards will undergo strict scrutiny, potentially delaying approval.

The Bottom Line

The 21Shares ETF filing is a monumental step for SEI, providing a direct path for institutional investment. The potential for staking rewards makes it an especially attractive product. While regulatory approval is not guaranteed and may take time, the mere filing has already injected bullish momentum into SEI, setting the stage for potential significant gains if the proposal advances.