The price of Sei (SEI) token rose by more than 25% in 24 hours, reaching $0.06285, thanks to the ETF proposal from Canary Capital. During this rise, the trading volume amounted to $203.44 million, which corresponds to an increase of 289%, according to CoinMarketCap. This indicates broad market participation, not just speculation. After a week of trading below the resistance price of $0.052, buyers pushed the price to a new level, thus showing a transition from consolidation to upward momentum. However, the price significantly exceeds the previous trading range, leaving little support for Sei above $0.052. The RSI indicator stands at 87.64, which reinforces the imbalance and indicates that the momentum has reached extreme levels.
The amended S-1 filing from Canary Capital suggests that about 90% of SEI assets managed by the fund will be locked in staking. Additionally, all future staking payouts will go directly into the fund, increasing the yield on SEI investments. Currently, about 4.2 billion tokens out of a total of 10 billion are already staked, which is approximately 42% of the circulating supply. Consequently, the ETF will limit the number of available tokens on the market rather than open new channels. BitGo will act as the sole custodian, simplifying operations but concentrating custodial risk. Large inflows could further squeeze liquidity and amplify SEI's response to demand.
While the ETF proposals have lifted market sentiment, derivative instruments continue to have a significant impact on current activity. Open interest amounted to about $95 million with moderately positive funding at 0.01%. Notably, the proposed ETF has not yet begun attracting real creations, as approval and listing have not yet been obtained. In other words, the recent premium increase depends on the expectation of ETF creation rather than direct demand for the ETF. It is expected that the transition to spot trading will help strengthen the rally; otherwise, a decline in optimism about the ETF could push traders to exit, putting pressure on the recent rise.
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