In a strategic move that could reshape the landscape of cryptocurrency investments, Nasdaq has officially filed to list a spot Sui exchange-traded fund (ETF) in collaboration with crypto asset manager 21Shares. The filing, submitted on May 23, signals the commencement of the Securities and Exchange Commission’s (SEC) rigorous review process. This development marks a significant step forward in bringing the Sui (SUI) token to mainstream investors in the United States.
The Mechanics of the Filing
Nasdaq’s recent 19b-4 filing is a critical maneuver in the regulatory dance with the SEC. It follows 21Shares’ submission of its S-1 registration statement on April 30, both pivotal documents in the bid to get the SUI ETF off the ground. The SEC now faces a timeline to either approve, reject, or delay the application within 45 days, with the possibility of multiple extensions, stretching the review period to as long as 240 days. The final decision on the ETF could be postponed until January 18, 2026, at the latest.
What’s interesting here is the choice of custodians: BitGo and Coinbase Custody are proposed to safeguard the SUI assets. However, some details remain under wraps, such as the management fee and the ETF’s ticker symbol. This leaves room for speculation and highlights the cautious optimism surrounding the industry. As explored in our recent coverage of 21Shares Files for SUI ETF, SUI Rises 4%, the market’s reaction to these filings can often be swift and significant.
Sui: A Rising Star in the Crypto Cosmos
The Sui token, while not yet a household name, is gathering momentum, primarily due to its innovative network. SUI serves multiple functions—staking for rewards, paying gas fees, acting as a liquid asset for various Sui applications, and providing governance capabilities. These functionalities underscore its potential as a versatile asset in the decentralized finance (DeFi) space.
Currently ranked as the 13th-largest cryptocurrency, SUI’s market cap of $12.3 billion may seem modest next to Solana’s towering $92 billion. Yet, the Sui ecosystem is gaining attention for its robust focus on decentralized applications and is even being whispered about as a Solana challenger. The stakes are high, and the crypto community is watching closely.
A Broader Context: The Appeal of Crypto ETFs
21Shares isn’t new to the ETF game. It already lists a Sui exchange-traded product in Europe, trading on Euronext Paris and Amsterdam. These European listings have propelled SUI-based products to accumulate $317.2 million in assets under management, according to a report from CoinShares dated May 26. Between May 16 and May 24, SUI ETP inflows increased by $2.9 million, positioning it just behind heavyweights like Bitcoin, Ether, Solana, and XRP in net asset terms.
The interest in SUI highlights a broader trend: the growing appetite for regulated, crypto-linked financial products. As traditional finance (TradFi) increasingly intersects with decentralized finance (DeFi), products like the SUI ETF may offer a bridge for investors seeking exposure to the crypto markets without direct ownership of the assets. This follows a pattern of institutional adoption, which we detailed in Nasdaq Seeks SEC Approval to List 21Shares Dogecoin ETF.
Looking Ahead: What Does the Future Hold?
The introduction of a Sui ETF in the US could be a game-changer, not just for 21Shares but for the entire crypto investment landscape. Yet, challenges remain. The SEC’s cautious stance on crypto ETFs suggests that approval is far from a done deal, and the market is rife with anticipation—and, perhaps, a touch of skepticism.
As we await the SEC’s verdict, the implications for the broader crypto ecosystem are profound. Could a successful launch of the Sui ETF pave the way for more innovative financial products tied to emerging cryptocurrencies? And how might this affect the balance of power within the crypto market itself?
While the answers remain uncertain, one thing is clear: the crypto world is evolving, and Nasdaq’s filing is just the latest chapter in this dynamic story. Keep your eyes peeled. The outcome could ripple far beyond the confines of the Sui network.
Source
This article is based on: Nasdaq files for 21Shares Sui ETF, kicking off SEC review
Further Reading
Deepen your understanding with these related articles:
- Litecoin Surges 7% as SEC Likely to Approve Spot ETF with 90% Odds: Analyst
- US crypto groups urge SEC for clarity on staking
- Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
