Canary Capital has submitted a second amendment to the registration statement for its proposed Canary Staked SEI ETF, updating how the fund intends to manage its SEI holdings. The latest filing puts a specific figure on the staking strategy, with approximately 90% of the fund’s SEI expected to participate in staking.
The filing, signed on September 15, identifies BitGo Trust Company as the custodian for the trust’s SEI. Canary also says the ETF seeks to list and trade on the Cboe BZX Exchange, although the proposed product has not been approved for trading.
The amendment gives investors more detail about the structure than earlier versions of the proposal. Rather than simply offering exposure to SEI’s market price, the fund is designed to combine direct SEI exposure with the potential for additional tokens generated through the network’s proof-of-stake system.
Canary Adds Detail to Staked SEI ETF Structure
The approximately 90% staking allocation is the most notable change in the latest filing. If the product launches under the proposed structure, most of the SEI held by the trust would be placed into staking arrangements while the remaining assets would provide liquidity for the fund’s operational requirements.
The filing also makes BitGo the named custodian. BitGo is responsible for holding the trust’s digital assets, while the document notes that its custody services are not insured by the FDIC and that private insurance coverage is shared among its customers.
For investors, staking introduces another component to the potential return profile. Instead of relying exclusively on changes in the price of SEI, the fund could receive staking rewards, although those rewards would remain denominated in SEI and therefore remain exposed to the token’s market price.
Related: Sei Network Wallet to Ship Pre-Installed on Xiaomi Smartphones
The filing does not reveal a ticker symbol or sponsor fee in the information currently available. Those details could become important if the product moves closer to launch because operating costs would affect how much of the staking income ultimately benefits shareholders.
The proposed Cboe BZX listing would also provide a regulated exchange structure through which investors could potentially obtain SEI exposure without directly managing wallets, validators or staking operations. That would separate the investment product from the technical process of holding and staking SEI themselves.
However, the amendment should not be confused with regulatory approval. Canary has filed the registration statement, but the existence of an S-1 amendment does not establish that the SEC has approved the fund or that trading will begin on Cboe BZX.
Michaël van de Poppe Sees a $0.10 Scenario
The ETF filing arrives alongside renewed attention from crypto analyst Michaël van de Poppe. He said SEI has been accumulating within its current ranges and pointed to a divergence that he believes has been developing for several months.
Van de Poppe described a move toward $0.10 as a potential bullish scenario if the divergence develops into a breakout. That level represents an analyst’s technical view rather than a guaranteed price target, and the market would still need to establish the momentum required to reach it.
The timing of the ETF amendment has also drawn attention to SEI’s market performance. Recent reports showed the token moving sharply higher following news of the filing, illustrating how quickly regulatory developments can affect sentiment around smaller digital assets.
Still, an ETF filing alone does not guarantee sustained demand for SEI. Any eventual impact would depend on factors including regulatory approval, the fund’s launch, investor inflows, staking economics and broader cryptocurrency market conditions.
The proposed product nevertheless adds another institutional-access route to the SEI discussion. If approved, its combination of spot exposure and staking could provide a different structure from a conventional crypto ETF that simply holds the underlying asset.
For now, the key developments are the second amendment, the proposed 90% staking allocation, BitGo’s role as custodian and the intended Cboe BZX listing. Van de Poppe’s $0.10 scenario adds a technical angle, but the ETF remains a proposal rather than a live investment product, leaving regulatory progress and actual investor demand as the next developments to watch.
About The Author
