DTCC Listing of Canary’s Staked SEI ETF Highlights Evolving Institutional Pathways

Could the recent registration of a staked SEI exchange-traded fund on a major clearing platform mark a turning point for institutional access to the Sei Network?

Institutional Momentum Builds for SEI ETFs

The Depository Trust & Clearing Corporation (DTCC) has added Canary Capital’s Staked SEI ETF to its active and pre-launch category, positioning the product for potential electronic trading and clearing once regulatory hurdles are cleared. This step, while not equivalent to full operational status, underscores a procedural advancement in the ETF approval pipeline. The ETF remains non-operational for creation or redemption at this stage, but its inclusion signals issuer preparedness amid shifting regulatory landscapes. Market participants interpret such listings as indicators of confidence, particularly for staking-inclusive products that have faced scrutiny. Canary Capital filed its S-1 registration earlier in 2025, reflecting early efforts to bring staked SEI exposure to traditional investors. This development aligns with broader filings from other issuers, including Rex-Osprey for a staked SEI ETF and 21Shares for a SEI-focused product, pointing to increasing institutional curiosity in the Sei Network’s ecosystem.

Regulatory Shifts Enable Staking in Crypto ETFs

Recent guidance from the US Treasury and Internal Revenue Service, via Revenue Procedure 2025-31, has introduced a safe-harbor framework for crypto ETFs and trusts engaging in staking. This addresses previous tax uncertainties and could facilitate approvals for products like Canary’s ETF by clarifying permissible activities. Key conditions outlined in the procedure include:

• Holding only one type of digital asset alongside cash equivalents.
• Utilizing qualified custodians for asset and key management.
• Adhering to SEC-approved liquidity management policies.
• Restricting operations to holding, staking, and redeeming assets, with no discretionary trading.

Mixed On-Chain Signals Amid Capital Inflows

Despite progress around the ETF, Sei Network’s on-chain data reveals a complex picture. SEI ranked second in net flows over the past day, as investor rotation fueled notable inflows amid market volatility. Yet this movement contrasts with a sharp November drop in total value locked (TVL)—the steepest decline in nearly two years. Roughly 1 billion SEI tokens have been unstaked, signaling rising user exits from the ecosystem. These shifts may stem from profit-taking or changing DeFi participation but come alongside renewed price optimism. Technically, SEI appears to be completing a falling-wedge pattern, with historical precedent suggesting a potential 100–150% rally after breakout. Together, these factors underline the tension between short-term institutional enthusiasm and network fundamentals. While ETF listings may expand liquidity and exposure, longer-term resilience will depend on reversing TVL erosion and rebuilding user confidence. How might staked ETFs shape the future of networks like Sei?