Canary Capital, an investment manager, has established a statutory trust for a staked Sei (SEI) exchange-traded fund (ETF) in Delaware to prepare for the launch of the product. The next step likely involves filing a Form S-1 registration statement with the US Securities and Exchange Commission (SEC).

The official state website confirms that the trust was registered on April 23 with file number 10171975. This registration follows the recent filing by Canary for a staked ETF based on Tron (TRX) on April 18. Canary is also working on ETF registrations for various other altcoins like Pudgy Penguins (PENGU), Axelar (AXL), Solana (SOL), XRP (XRP), indicating their expanding involvement in cryptocurrency-linked investment products.

A potential Canary Staked SEI ETF would monitor SEI's price like traditional ETFs, with the added advantage of staking rewards, offering investors both passive income and market exposure. However, this feature has yet to be approved for any US spot crypto ETF.

While the SEC has previously been cautious about staking in ETFs, a shift in the administration's stance on cryptocurrencies has encouraged issuers to reattempt such offerings. Franklin Templeton and the NYSE have made similar moves, with staking provisions in their planned ETFs.

However, with the SEC extending the decision deadline, there may be delays in approving such products, casting uncertainty on the approval timeline for Canary Capital's SEI ETF. Despite this, the registration coincides with rising institutional interest in Sei, showcased by World Liberty Financial's (WLFI) accumulation of SEI tokens, which has brought optimism about its future.

Notably, the Sei Foundation launched the Sei Development Foundation on April 2 to bolster its presence in the US by supporting developers and builders within its ecosystem. Nonetheless, the SEI token has faced market challenges, with a significant decline in its value over the past year and a dip in its price over the last day. At present, SEI is trading at $0.19, while its Total Value Locked (TVL), after reaching a peak recently, has decreased by 8.3% to $382 million.