A New SUI Exchange-Traded Fund Proposal Submitted to SEC

A recent filing has been submitted to the SEC for the listing of a SUI exchange-traded fund on Cboe BZX, potentially paving the way for the approval of a spot fund linked to the layer-1 token.

Details of the Proposal

The proposal, filed on April 8 by Cboe BZX Exchange, is seeking regulatory approval to list and trade shares of the Canary SUI ETF. If approved, this would mark the first opportunity in the U.S. for direct exposure to SUI, the native token of the Sui Network.

The ETF is designed to hold spot SUI and may also engage in staking activities to earn rewards. All SUI holdings will be securely stored in segregated cold wallets managed by a third-party custodian. The fund’s net asset value will be tied to the CoinDesk SUI USD index, which is updated daily at 4:00 p.m. ET.

The trust behind the ETF was established as a Delaware statutory trust on February 27, with its S-1 registration submitted in March. Notably, the trust will not be classified as an investment company or commodity pool, keeping it outside certain regulatory frameworks.

Market Response and Recent Developments

Following the news of the SUI ETF filing, the price of SUI briefly surged above $2 before experiencing a slight decline. As of the latest data, SUI is down 5.9% over the past day, trading at $1.94.

This filing is part of a broader trend of crypto ETF proposals as issuers rush to introduce new products to the market. Canary Capital, the firm behind the SUI ETF proposal, has previously filed for ETFs linked to assets like Solana, XRP, and Litecoin.

More recently, Canary made headlines with a unique filing for a hybrid ETF that combines cryptocurrency and NFTs. This proposed fund would track the Pudgy Penguins ecosystem, holding the PENGU governance token along with a collection of Pudgy Penguins NFTs.

The momentum in the ETF space has picked up since President Trump’s return to office in January. The SEC has seen a wave of altcoin filings, including funds targeting memecoins such as Dogecoin and Official Trump.

Overall, the submission of the Canary SUI ETF proposal represents a significant development in the cryptocurrency market, potentially opening up new avenues for investors to gain exposure to the SUI token through a regulated investment vehicle.