TLDR
- Cboe BZX Exchange has filed for SEC approval to list the first US Sui (SUI) spot ETF, managed by Canary Capital
- If approved, it would be the first US ETF offering direct exposure to SUI, which has a market cap of around $6.5 billion
- The proposed ETF may also stake a portion of its SUI holdings to generate rewards
- This filing is part of a broader trend of crypto ETF proposals since President Trump took office
- Canary Capital has been active in filing for various altcoin ETFs, including a hybrid NFT/crypto ETF
Cboe BZX Exchange has officially submitted a Form 19b-4 to the US Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the Canary SUI ETF. T
he April 8 filing represents a potential milestone for altcoin investors in traditional markets.
If approved, this exchange-traded fund would become the first in the United States to hold SUI, the native token of the Sui Network. The digital asset currently has a market capitalization of approximately $6.5 billion according to market data.
The proposed ETF would offer regulated exposure to SUI tokens through a traditional investment vehicle. This development comes amid growing interest in cryptocurrency-based financial products, particularly following recent regulatory shifts.
According to the filing, the fund may stake some of its SUI holdings. “The Sponsor may stake, or cause to be staked, all or a portion of the Trust’s SUI through one or more trusted staking providers,” the document states.
Sui Network Background
Sui is a blockchain network designed to provide users with a streamlined onboarding experience similar to traditional Web3 applications. The platform is built using Move, a smart contract framework based on the Rust programming language.
Current data shows Sui has approximately $1.1 billion in total value locked (TVL) across its ecosystem. This metric indicates the total amount of assets currently being utilized within the network’s various applications.
The Sui team views this ETF filing as a vote of confidence from traditional finance. They believe it validates Sui’s potential as a high-speed asset coordination layer for both decentralized and institutional ecosystems.
Over the past six months, the Sui ecosystem has attracted major financial institutions. Companies like Franklin Templeton, Grayscale, VanEck, and Ant Financial have developed various investment tools utilizing Sui’s infrastructure.
Broader Crypto ETF Momentum
The SUI ETF filing comes during a period of increased activity in the crypto ETF space. Since President Donald Trump took office on January 20, the SEC has received numerous new altcoin ETF filings.
Canary Capital, the asset manager behind the proposed SUI ETF, has been particularly active in this area. The firm recently filed to launch a hybrid ETF combining cryptocurrencies and non-fungible tokens (NFTs).
This proposed hybrid fund would offer exposure to digital assets like Solana and Ethereum alongside collectibles such as Pudgy Penguins and the PENGU token. The filing represents one of the first attempts to merge these two digital asset classes in a regulated investment product.
Teucrium introduced a leveraged XRP ETF on April 8. The 2x Long Daily XRP fund reportedly saw strong demand at its debut, suggesting growing investor interest in crypto-backed financial products.
Market Response and Outlook
SUI’s price briefly surged following news of the ETF filing, reaching above $2. However, the rally proved short-lived. At the time of reporting, SUI had fallen 5.9% over the previous 24 hours to $1.94.
The trust itself was registered as a Delaware statutory trust on February 27, with its S-1 registration submitted in March. According to the filing, the fund’s net asset value would track the CoinDesk SUI USD index, updated daily at 4:00 p.m. ET.
SUI Price
All of the trust’s SUI would be stored in segregated cold wallets maintained by a third-party custodian. The filing also clarifies that the trust will not be classified as an investment company or commodity pool, placing it outside certain regulatory frameworks.
Some market analysts see these ETF developments as signs of a maturing cryptocurrency market. They suggest digital assets are increasingly being integrated into mainstream portfolios through regulated, transparent investment vehicles.
However, not all industry observers are convinced about investor demand for altcoin ETFs. Katalin Tischhauser, crypto bank Sygnum’s research head, told Cointelegraph:
“There is all this frothy excitement in the market about these ETFs coming, and no one can point to where substantial demand is going to come from.”
The SEC must now review and approve the filing before Cboe BZX Exchange can list any shares of the fund. No timeline for this decision has been announced.
