Decline in SEI shares by 2%, despite 21Shares Spot ETF filing's submission

In the world of cryptocurrency, the Securities Exchange International (SEI) has been experiencing a shift in market dynamics. The decline in Open Interest (OI) and the negative Funding Rate suggest that traders are closing their positions and fresh participation in the market remains limited.

This selling pressure is evident in the negative Buy-Sell Delta of -5.7 million, a clear indication of strong selling pressure. On the 29th of August, SEI recorded a Sell Volume of 32.59 million, significantly higher than its Buy Volume of 26.8 million.

The Relative Strength Index (RSI) of SEI has fallen to 45 after a bearish crossover, another sign of selling pressure. Long positions in SEI are being exited, while short positions are gaining momentum. The Chaikin Money Flow (CMF) of SEI has dropped to -0.04, indicating bearish pressure and sellers' dominance.

The SEI Spot market has recorded a negative Delta for nine consecutive days, further underscoring the selling trend. If bearish pressure and selling persist, SEI's downtrend will likely continue and retest the $0.2801 support level.

However, there is a glimmer of hope for SEI investors. The SEI Exchange-Traded Fund (ETF) application, submitted by VanEck to the Securities and Exchange Commission (SEC) before 21Shares, could potentially turn the tide. The 21Shares filed an S-1 registration form with the SEC for the SEI ETF, and if successful, could provide a boost to the SEI market.

The SEI ETF, which will be held in custody by Coinbase, is structured as a passive product set to mirror SEI's price performance. It will not employ speculative trading, leverage, or derivatives. Instead, it will track the price of the SEI token and earn staking rewards.

The entry of 21Shares into the race for the SEI ETF, following the initial application by Canary Capital and Cboe's 19b-4, adds another layer of interest to the SEI market. If the 21Shares ETF has a positive impact on the market, SEI could rebound towards $0.34.

At press time, SEI is trading at $0.28, marking a 2.71% decline over the past day. As the market continues to evolve, it will be interesting to see how the SEI ETF will impact the SEI market dynamics.