The Curious Case of SEI: Why a Filing Sparks No Cheer

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Key Insights from the Wild World of Crypto

In a twist that even the sharpest of market watchers could hardly predict, 21Shares has unfurled an S-1 filing with the SEC for an SEI ETF, galloping alongside the likes of Canary Capital and Cboe. But lo and behold, SEI finds itself under the cold, unyielding grip of sellers, as they reign supreme in both the Spot and Futures markets.

With institutional appetite for crypto assets at an all-time high, one would imagine that Spot ETFs would be dancing in the spotlight. Yet, the stage appears dimmer than a coal mine at midnight.

Ever since the birth of the Ethereum [ETH] spot ETF in the mid-summer of 2024, a cascade of ETF filings has surfaced, hinting at untold demand, yet SEI seems to have become a wallflower at the dance of cryptocurrency.

21Shares Takes the Bait for SEI ETF

In what can only be described as a bold move, 21Shares has sent an S-1 registration form soaring toward the SEC, all in the name of SEI ETFs.

The contents of the filing suggest that this ETF is set to follow the whims of the SEI token’s price while collecting staking rewards, which sounds awfully enticing, doesn’t it?

Now, the custody of this ETF will rest in the hands of Coinbase – as if they aren’t busy enough! Authorized participants can subscribe and redeem their shares with cash or through in-kind transfers, which is a fancy way of saying, “you give us your stuff and we might give you some of it back.”

But wait, there’s more! This ETF is constructed to be as passive as a sleepy cat, following SEI’s price with no speculative trading, leverage, or derivatives. Who doesn’t love a good nap on the investment frontier?

With this filing, 21Shares has entered a lively race for the SEI ETF, joining others to claim the crypto crown, a contest that kicked off with the likes of Canary Capital and Cboe’s 19b-4.

The Sellers: Rulers of SEI’s Kingdom

Curiously, in spite of the ETF being on the horizon, the altcoin has not managed to entice buyers. The SEI Spot market has been stuck in a gloomy spell, recording a negative Delta for nine straight days.

SEI Buy vs Sell Volume

On August 29th, SEI experienced a Sell Volume of 32.59 million, a figure that stands gallantly above its Buy Volume of 26.8 million.

This has led to a discouraging negative Buy-Sell Delta of -5.7 million, signifying the fierce grip of selling pressure. When the sellers turn out to be this aggressive, they often send prices diving off a cliff faster than a cartoon character can fall.

The Futures Market: A Den of Bears

While the prices are in a tailspin, SEI is finding fewer fans in the Futures arena.

As per the ever-watchful Santiment data, SEI’s Open Interest (OI) has sunk from $63 million down to $54 million; a $9 million tumble that has traders packing their bags.

SEI Open Interest

This decline in Open Interest usually means that traders are hastily scooting out of their positions, leaving only crickets and tumbleweeds in their wake.

Simultaneously, the altcoin’s Aggregated Funding Rate has dropped to a rather dismal -0.01%. It’s like a gloomy day with a side of bad news.

Such a double whammy – falling OI and a stage set for shorts – suggests that the market is embracing those bets on price declines. What a cheerful atmosphere!

SEI Funding Rate

In typical wild-west fashion, a higher demand for shorts suggests that players are gearing up for a fall. Someone grab the popcorn. 🍿

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Consequently, SEI’s Relative Strength Index (RSI) has plummeted to 45 after a bearish crossover, and the Chaikin Money Flow (CMF) dipped to -0.04, confirming the sellers’ stronghold on this beleaguered asset.

If the waves of bearish sentiment continue to overwhelm the seas of the market, SEI may well be destined to retest the $0.2801 support level. But if the 21Shares ETF manages to sprout a miracle, we might just see SEI bounce back to a cheerful $0.34. Here’s hoping-cue the laugh track! 🎭

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2025-08-29 22:08