21Shares has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to introduce a SUI exchange-traded fund (ETF) for American investors. If approved, the ETF would become the first U.S.-listed fund to offer direct SUI price exposure through traditional brokerage accounts.
The proposed ETF plans to track the performance of the native token of the Sui blockchain, using the CF Sui-Dollar Reference Rate Index as its benchmark. Unlike some recently proposed crypto funds, the ETF will not stake its holdings for yield; instead, it focuses on offering direct price exposure to the token. Coinbase will manage the custody of the fund’s assets, ensuring institutional-grade security and compliance.
The launch is contingent on SEC approval of both the S-1 and a related Form 19b-4 filing. This process has become familiar to the crypto industry following the recent wave of spot Bitcoin and Ethereum ETF launches. If the ETF succeeds in navigating regulatory hurdles, it will enable retail and institutional investors to buy and sell token exposure just as easily as they do with a stock or traditional ETF. These would be the technical hurdles often associated with direct crypto ownership.
The Rise of SUI and Strategic Partnerships
Sui, a layer-1 blockchain created by Mysten Labs, has gained popularity for its parallel transaction execution and sub-second finality.
It has found relevance mostly among developers and institutions for applications in gaming, NFTs, DeFi, and real-world asset tokenization, which has catapulted it to a market capitalization of over $12 billion, placing it just outside the global top 10 cryptocurrencies.
Besides the filing, 21Shares has announced a strategic partnership with the network, aimed at expanding global access and driving further adoption of the blockchain. As a result of the collaboration, both firms will participate in joint product development, research initiatives, and support for the ecosystem.
Similar Filings and Push toward Crypto Adoption
Six weeks prior, Canary Capital submitted its SUI ETF proposal, signaling a burgeoning race among asset managers to bring SUI exposure to U.S. markets.
Upon approval, the ETF will provide a regulated and accessible way for U.S. investors to participate in the growth of the Sui blockchain, allowing investors to access it through familiar brokerage channels.
It would be a pivotal milestone in bridging the gap between traditional finance and the rapidly evolving world of decentralized infrastructure. This development could shape the next wave of crypto adoption.
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