Canary Capital has filed paperwork with the SEC through the Cboe BZX Exchange for a spot SUI exchange-traded fund (ETF).
Canary Capital has filed paperwork with the SEC through the Cboe BZX Exchange for a spot SUI exchange-traded fund (ETF). The proposed ETF aims to track the performance of SUI, a cryptocurrency from a blockchain launched in May 2023. This layer-1 blockchain was developed by former Facebook engineers and utilizes a dual-layer consensus mechanism called Narwhal and Bullshark. Currently, SUI’s market capitalization is approximately $6.7 billion, ranking it as the 21st-largest cryptocurrency, with its fully diluted market cap exceeding $22.5 billion.
The ETF would be the first to track SUI, and it might also involve staking portions of its holdings through trusted providers, with the ETF possibly earning staking rewards. Canary Capital, based in Nashville, filed its initial registration statement with the SEC in March and later submitted the proposal. Cboe’s filing includes safeguards to prevent fraud and manipulation, drawing parallels to protections approved for Bitcoin and Ethereum ETFs.
The SUI token is gaining traction in decentralized finance (DeFi), with several projects launching on its network. DeepBook, a project that offers a central limit order book for DeFi, is set to launch its DEEP token on Oct. 14. In addition, Bitcoin restaking platform SatLayer announced its integration with the SUI network in December, enabling Bitcoin to be used in DeFi applications built on SUI. The integration of Bitcoin into SUI's fast transaction network is expected to bring further growth to the DeFi space on the blockchain.
However, Sui has encountered some challenges. In October, the team addressed insider trading allegations after on-chain data suggested that a wallet linked to the Sui Foundation had profited significantly from a sharp rise in the price of the SUI token. Additionally, the network experienced a brief outage in November, causing a two-hour halt in activity due to a bug.
Canary Capital’s filing for the SUI ETF is part of a broader effort to introduce several crypto ETFs. The firm has filed for other funds, including those targeting Litecoin, Solana, XRP, and Hedera. Its Litecoin ETF has already appeared on the Depository Trust and Clearing Corporation under the ticker LTCC, signaling preparations for launch.
This move also coincides with a partnership between World Liberty Financial (WLFI) and the Sui blockchain. WLFI, a crypto venture supported by President Trump, is working with Sui to develop new products and integrate Sui-based assets into its Macro Strategy fund.
The SEC is currently reviewing a number of ETF proposals related to crypto assets, following the successful approval of Bitcoin and Ethereum ETFs.
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