21Shares files S-1 form with the SEC for the SEI ETF

Key takeaways 

21Shares filed S-1 form with the SEC for the SEI ETF, joining Canary Capital and Cboe. SEI was experiencing intense downward pressure as sellers dominate both the Spot and Futures markets.

With institutional demand for crypto assets at an all-time high, market players have set their eyes on Spot ETFs.

In fact, since the launch of the Ethereum [ETH] spot ETF in mid-2024, multiple ETFs have been filed, signaling significant demand. 

21Shares File for SEI ETF

In a significant development, 21Shares filed an S-1 registration form with the United States SEC for SEI ETFs.

According to the filing, the ETF will track the price of the SEI token and earn staking rewards. 

The said, the ETF will be held in custody by Coinbase, and authorized participants may subscribe to and redeem shares in cash or through in-kind transfers. 

However, the ETF is only structured as a passive product set to mirror SEI’s price performance. Therefore, the ETF will not employ speculative trading, leverage, or derivatives. 

With the ETF Filing, 21Share joined a growing race for the SEI ETF, first started by Canary Capital and Cboe’s 19b-4. 

Sellers heavily dominate SEI

Surprisingly, despite 21Shares filing for the SEI ETF, the altcoin has failed to attract buyers. In fact, the SEI Spot market has recorded a negative Delta for nine consecutive days. 

Source: Coinalyze

On the 29th of  August , SEI recorded a Sell Volume of 32.59 million, significantly higher than its Buy Volume of 26.8 million.

This led to a negative Buy-Sell Delta of -5.7 million, indicating strong selling pressure.

Historically, such aggressive selling has often triggered sharp price declines, acting as a precursor to further downside.

Futures market extremely bearish 

Amid price struggles, SEI is experiencing less demand for Futures positions.

According to Santiment data, at press time, SEI’s Open Interest (OI) declined from $63 million to $54 million, marking a $9 million drop. 

Source: Santiment

A decline in Open Interest (OI) typically signals that traders are closing their positions, while fresh participation in the market remains limited.

At the same time, the altcoin’s Aggregated Funding Rate across exchanges turned negative, hitting a low of -0.01%.

This combination, falling OI and a negative Funding Rate, suggests that long positions are being exited, while short positions are gaining momentum.

Source: Santiment

Typically, a higher demand for shorts suggests that most participants are betting on prices to decline. 

Any impact on price?

While the market expected a spark of speculative demand and fresh capital following news of the ETF filing, this was not the case. 

At press time, SEI was trading at $0.28, marking a 2.71% decline over the past day, reflecting intense downward pressure. 

Source: Tradingview

As a result, the altcoin’s Relative Strength Index (RSI) fell to 45 after a bearish crossover. Likewise, Chaikin Money Flow (CMF) dropped to -0.04, further confirming bearish pressure and sellers’ dominance. 

If bearish pressure and selling persist across the market, SEI’s downtrend will likely continue and retest the $0.2801 support level.

However, if the 21Shares ETF has a positive impact on the market, SEI could rebound towards $0.34.