Canary's Staked SEI ETF Listed on DTCC: Market Awaits SEC Decision

The Canary Staked SEI Exchange-Traded Fund (ETF) has been officially registered on the Depository Trust & Clearing Corporation (DTCC) platform. While this does not imply approval by the U.S. Securities and Exchange Commission (SEC), it marks a significant operational milestone that many view as a positive indicator.

Key Takeaways

The Canary Staked SEI ETF has been registered on the DTCC platform, but SEC approval is still pending.
The ETF is classified as “active and pre-launch,” indicating readiness for future trading.
Recent regulatory updates may support future approvals for staking-inclusive products.
Sei is experiencing a notable influx of capital, despite challenges reflected in its total value locked (TVL).
Analysts are optimistic about SEI's price movements, predicting the potential for significant rallies.

This article serves as an essential overview of the latest developments surrounding Canary’s Staked SEI ETF and provides insights into the current state of the Sei Network.

Overview of Canary’s Staked SEI ETF Listing

As per the DTCC records, the product is categorized as “active and pre-launch.” This classification signifies that the ETF is technically poised for future electronic trading and clearing, pending SEC approval. Despite its listing, the ETF cannot yet be created or redeemed, meaning that it is non-operational at this time. Nonetheless, this step is commonly recognized as part of the ETF deployment process, often seen by market participants as a sign of confidence from the issuer.

“DTCC facilitates the behind-the-scenes clearing and settlement for most U.S. stocks and ETFs. This places the SEI ETF in the typical pipeline before it appears on brokerage platforms. Once market sentiment shifts, SEI is expected to gain significant traction,” commented an analyst.

Earlier this year, Canary Capital filed an S-1 to propose a Staked SEI ETF. At the time, the SEC was cautious about staking mechanisms in exchange-traded products, but the regulatory environment is evolving.

Recently, BeInCrypto reported that the U.S. Treasury and the Internal Revenue Service released Revenue Procedure 2025-31, which clarifies the safe-harbor framework for crypto ETFs and trusts that wish to engage in staking and distribute rewards to investors.

This new procedure sets stringent criteria, including the requirement to hold only one type of digital asset plus cash, utilize qualified custodians for key management, maintain SEC-approved liquidity policies, and limit activities strictly to holding, staking, and redeeming assets without engaging in discretionary trading. Importantly, these guidelines resolve previous tax uncertainties, potentially paving the way for SEC approval of staking-inclusive products like the Canary SEI ETF.

In addition to Canary, Rex-Osprey has also submitted an application for a Staked SEI ETF. Furthermore, 21Shares is pursuing SEC approval for an ETF centered on the SEI, showcasing broader institutional interest in the Sei Network.

SEI Experiences Capital Movement Despite TVL Challenges

In another development, Sei is witnessing strong capital movement. Data from Artemis Analytics indicates that the network ranks second in net flows over the past 24 hours, with inflows dominating the trend. This suggests that investors are increasingly turning to SEI in the face of wider market volatility.

Analysts are growing more optimistic about SEI’s price potential, with ZAYK Charts noting that the altcoin appears to be completing another falling-wedge cycle. They argue that a breakout could lead to a price surge of 100–150%.

SEI Price Support Levels
$SEI is maintaining this crucial support level. Expecting a strong bounce here!

However, on-chain data tells a more nuanced story. DefiLlama reports a significant drop in the network’s total value locked (TVL) this November, marking the most substantial decrease in nearly two years. Approximately 1 billion SEI tokens were unstaked, indicating an accelerated rate of user exits from the ecosystem.

SEI TVL Decline
Sei's TVL has dipped in November.

For now, the listing represents a procedural yet important signal that the pathway for institutional exposure to SEI is starting to take shape, amidst a backdrop of recovering inflows and ongoing challenges within the network.