Yup, second version is basically the more common; there are RAID controllers out there that have support for SED drives in that the controller is able to store/manage the keys needed to unlock the drives (seeing as they can't be passed through to the OS). The only method I'm familiar with for SED FDE is TCG-
Opal and the only card I've come across with people using it in anger is the dell H800 - but as that's an LSI underneath I expect support is much broader than I'm aware of.
A little more reading shows that LSI call this technology "
safestore" and it looks like one of those "How Much?!?!!!" add-ons. Compatible controllers listed on the specifications page.
Details on key management and recovery however seem... scant. Can't find any mention of how to back up the little key store, so if the controller went foom you'd find yourself in Excrement Brook without adequate manual propulsion techniques.