Article Summary
Nasdaq has filed for crypto asset manager 21Shares to list a spot Sui exchange-traded fund (ETF) in the US, initiating the Securities and Exchange Commission’s (SEC) review process. The filing, submitted on May 23, follows 21Shares’ April 30 S-1 registration statement. The SEC has up to 240 days to decide on the application, with a final deadline of January 18, 2026. The proposed ETF would track the Sui (SUI) token, which powers the Sui blockchain and is used for staking, gas fees, and governance. This move highlights the growing interest in Sui as a potential competitor to Solana in the decentralized application space.
What This Means for You
- Investment Opportunity: If approved, the 21Shares SUI ETF will provide a regulated way for investors to gain exposure to the Sui blockchain without directly holding the token.
- Market Impact: The approval of a Sui ETF could increase demand for SUI tokens, potentially driving up its price and market capitalization.
- Regulatory Clarity: The SEC’s decision on this ETF will provide insights into the regulatory stance on crypto-based financial products in the US.
- Future Outlook: If successful, this could pave the way for more blockchain-specific ETFs, expanding the crypto investment landscape.
Nasdaq files for 21Shares Sui ETF, kicking off SEC review
Nasdaq has filed for crypto asset manager 21Shares to list a spot Sui exchange-traded fund (ETF) in the US, initiating the Securities and Exchange Commission’s review process.
The stock market’s May 23 19b-4 filing, which asks the SEC to list the 21Shares SUI ETF, follows 21Shares’ April 30 submission of its S-1 registration statement to the SEC, which asked the regulator to approve trading of the proposed fund.
Both regulatory filings are needed for the Sui (SUI) tracking fund to go live, with the 19b-4 filing kicking off the SEC’s review process. The agency must decide whether to accept, reject or delay the application within 45 days and it can delay its decision multiple times, for a maximum review period of 240 days.
The SEC must decide on 21Shares’ application by Jan. 18, 2026, at the latest.
21Shares proposed BitGo and Coinbase Custody as the custodians to hold SUI on behalf of the trust, however, the filing did not include details on a management fee or ticker.
Canary Capital is the only other asset manager that has submitted 19b-4 and S-1 filings to list a spot Sui ETF, filing the forms on April 8.
21Shares said in its 19b-4 filing that the SUI token powers the Sui network and serves four main purposes: it can be staked to earn rewards, used to pay gas fees, function as a liquid asset for Sui applications and serve as a governance token.
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The Sui ecosystem is largely focused on decentralized applications and has been dubbed a potential Solana killer.
SUI is the 13th-largest cryptocurrency, but its $12.3 billion market cap remains a fraction of Solana (SOL)’s $92 billion market cap, according to CoinGecko.
21Shares aims to add to SUI offerings
21Shares already lists a Sui exchange-traded product in Europe, on the Euronext Paris and Euronext Amsterdam stock exchanges.
Those listings have contributed to SUI-based exchange-traded products having $317.2 million in assets under management (AUM), according to a May 26 report from CoinShares.
Flows into SUI ETPs increased by $2.9 million between May 16 and May 24, and only trails Bitcoin (BTC), Ether (ETH), Solana and XRP (XRP) in terms of net assets.
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People Also Ask About
- What is a Sui ETF? A Sui ETF is an exchange-traded fund that tracks the performance of the Sui (SUI) cryptocurrency.
- Who is 21Shares? 21Shares is a leading crypto asset manager known for launching crypto-based exchange-traded products.
- What is the Sui blockchain? Sui is a decentralized blockchain focused on fast and scalable decentralized applications (dApps).
- How does the SEC review process work? The SEC reviews ETF applications through a 19b-4 filing, which can take up to 240 days.
- What are the benefits of a Sui ETF? A Sui ETF provides a regulated way to invest in Sui without directly holding the cryptocurrency.
Expert Opinion
The filing for a Sui ETF by Nasdaq and 21Shares marks a significant step in the mainstream adoption of blockchain-based financial products. If approved, it could set a precedent for other blockchain-specific ETFs, further bridging the gap between traditional finance and the crypto ecosystem. However, the SEC’s cautious approach to crypto regulation means investors should prepare for potential delays or rejections.
Key Terms
- Sui ETF
- 21Shares SUI ETF
- SEC review process
- Sui blockchain
- Decentralized applications (dApps)
- Crypto asset management
- Exchange-traded products (ETPs)
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