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A new filing to list a SUI exchange-traded fund (ETF) on the Cboe BZX Exchange has been submitted to the U.S. Securities and Exchange Commission (SEC). This marks a significant step toward potential approval of a spot fund tied to SUI, the native token of the Sui Network.
Details of the SUI ETF Proposal
Filed on April 8, the proposal seeks regulatory approval to list and trade shares of the Canary SUI ETF. If approved, this would be the first ETF in the United States offering direct exposure to SUI tokens. The fund is designed to hold spot SUI, with the option to stake a portion of its holdings to earn rewards.
According to the filing, all SUI assets within the trust will be stored in segregated cold wallets maintained by a third-party custodian. The fund’s net asset value (NAV) will be updated daily, tracking the CoinDesk SUI USD Index at 4:00 p.m. ET.
Registration and Regulatory Classification
The trust overseeing the ETF was registered as a Delaware statutory trust on February 27, with its S-1 registration submitted in March. Importantly, the filing indicates that the trust will not be classified as an investment company or commodity pool. This distinction places the ETF outside certain regulatory regimes, potentially streamlining the approval process.
Impact on SUI Token Price
SUI’s price briefly surged following the announcement, surpassing the $2 mark. However, the rally was short-lived, and as of the latest data, SUI is trading at $1.94, reflecting a 5.9% decline over the past 24 hours.
Crypto ETF Market Trends
This filing is part of a broader trend in the cryptocurrency ETF space, where issuers are racing to introduce innovative products. Canary Capital, the entity behind the SUI ETF proposal, has been particularly active in this area. The firm has previously filed for ETFs tied to prominent digital assets such as Solana, XRP, and Litecoin.
In addition, Canary Capital recently proposed a hybrid ETF that combines cryptocurrency and non-fungible tokens (NFTs). The unique fund would track the Pudgy Penguins ecosystem, holding both the PENGU governance token and a collection of Pudgy Penguins NFTs.
Regulatory Momentum for Crypto ETFs
The push for cryptocurrency ETFs has gained traction in recent months. The SEC has seen a surge in filings for altcoin-focused funds, including proposals targeting memecoins like Dogecoin. This growing interest reflects the evolving investment landscape as issuers and investors explore new opportunities within the crypto market.
The introduction of a SUI ETF could further expand access to cryptocurrency investments for retail and institutional investors. As regulatory approval processes unfold, the potential launch of these ETFs may shape the future of crypto investing.
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