Canary Capital has filed a second amendment to its S-1 registration statement for the proposed Canary Staked SEI ETF, disclosing plans to hold spot SEI and stake approximately 90% of the fund's assets, with BitGo serving as the sole custodian, pending regulatory approval. According to Sei Network, the filing substantially revises the proposed staking mechanics. The development comes as SEI's price remains under pressure despite renewed attention surrounding the ETF process, with regulatory progress and investor demand set to determine whether the product ultimately gains traction.

Canary Capital Advances Staked SEI ETF Filing

Canary Capital submitted Pre-Effective Amendment No. 2 to its S-1 registration statement, according to Sei Network, which highlighted the update in a post on X. A pre-effective amendment is a revision filed while the registration statement remains under SEC review, before it can be declared effective. Under the proposal, approximately 90% of the fund's SEI holdings would participate in staking, while BitGo, an institutional digital asset custodian, would handle custody of the underlying tokens under the proposed structure.

Canary Capital has filed Amendment No. 2 to its S-1 for a Staked SEI ETF. The ETF will hold spot SEI. The new amendment substantially revises the staking mechanics, estimating ~90% staked, custodied solely in @BitGo. pic.twitter.com/bv8smJWyJS

— Sei (@SeiNetwork) September 20, 2026

Staking could allow the fund to earn additional SEI rewards while maintaining direct exposure to the cryptocurrency's price. Staking itself is the mechanism by which tokenholders commit assets to help operate a proof-of-stake network, receiving rewards in return. However, actual returns would depend on network conditions, staking performance, and applicable fees.

Unlike traditional spot crypto ETFs, Canary's proposed structure includes staking as a central feature. Investors could therefore gain exposure to SEI price movements alongside potential staking rewards, rather than price performance alone.

Approval remains uncertain. Filing an amendment does not guarantee regulatory clearance from the U.S. Securities and Exchange Commission or establish a launch date, and further regulatory reviews may also affect the fund's proposed staking arrangements before trading begins.

SEI Price Falls 4.49% Despite ETF Development

SEI traded at $0.06885 at the time of the market snapshot, reflecting a 4.49% decline over the previous 24 hours, according to data from CoinCodex. Trading activity remained substantial, with daily volume reaching $76.13 million. Market capitalization stood at $521.89 million, representing approximately 0.02% of the broader cryptocurrency market.

Despite the recent selling pressure, SEI recorded 18 positive trading days over the past month, a60% positive-day ratio during the period. The token also traded above its 200-day simple moving average, a widely followed long-term trend indicator, suggesting some measure of longer-term price support.

However, overall market sentiment remained bearish, even as the Fear & Greed Index registered 71, a level indicating broader market greed. The index measures overall crypto market sentiment, so the greed reading applies to the broader market rather than SEI specifically. Daily trading volume relative to market capitalization stood near 0.1459, pointing to active trading compared with SEI's valuation.

What Comes Next for SEI?

Canary Capital's filing could provide institutional investors with another route for gaining regulated exposure to SEI, the native token of the Sei network. Still, regulatory approval alone would not guarantee significant demand or sustained buying activity.

Investors will likely monitor further filing updates, regulatory decisions, and potential fund inflows. For now, SEI price movements remain tied to broader market conditions, trading activity, and investor interest in the proposed ETF.

Source: Live Bitcoin News