Canary Capital Seeks Approval for the First Sui ETF in the U.S.

Canary Capital has filed an application with the U.S. Securities and Exchange Commission (SEC), the regulatory body overseeing the American financial markets, to launch the first exchange-traded fund (ETF) based on the cryptocurrency Sui (SUI). If approved, the fund will provide investors with a new way to gain exposure to the price fluctuations of Sui without the need to purchase the digital asset directly or navigate the complexities of cryptocurrency storage and security.

Currently, Sui ranks 19th among the largest cryptocurrencies by market capitalization—the total value of all circulating coins—according to data from CoinMarketCap. As a Layer 1 blockchain (a type of network that operates independently and enables the development of other applications on top of it), Sui has gained recognition for its high transaction speed and scalability. Scalability refers to the network’s ability to accommodate a growing number of users without compromising performance, a key factor making it increasingly attractive to both institutional and retail investors.

The application submitted by Canary Capital does not yet specify the ETF’s ticker (the short symbol used to identify assets on stock exchanges) or the exchange where it will be listed. The asset manager has only disclosed that the fund will exclusively hold SUI tokens, allowing investors to track the cryptocurrency’s price movements without dealing with the technical challenges of custody and security.

Regulatory Shifts Could Impact Sui ETF Approval

Canary Capital’s initiative comes at a strategic time, as the U.S. market sees growing acceptance of cryptocurrency-related ETFs. The company had previously applied for ETFs linked to other popular cryptocurrencies, including Solana (SOL), Litecoin (LTC), XRP, Hedera (HBAR), and Axelar (AXL). However, each request undergoes rigorous scrutiny, including the mandatory submission of Form 19b-4, a document required for listing new financial products on U.S. stock exchanges before receiving final approval from the SEC.

• Check next crypto to hit $1

The Sui ETF application coincides with an evolving regulatory landscape in the United States. SEC Commissioner Hester Peirce has indicated that the agency is likely to maintain a cautious stance until the Senate confirms Paul Atkins, a Republican nominee, as the new SEC Chair. Atkins is scheduled for a Senate hearing on March 27, and if confirmed, his leadership could accelerate the approval of cryptocurrency-based financial instruments, including ETFs.

If the Sui ETF gains approval, it will offer investors an accessible entry point into the cryptocurrency market, allowing them to gain exposure to the asset without needing to understand the complexities of direct storage and management. However, the final decision still hinges on the additional approval of Form 19b-4, a crucial step for the fund’s official listing.

The Growing Trend of Crypto ETFs in the U.S.

Canary Capital’s application underscores a growing trend in the United States. If approved, the Sui ETF would open doors for new investors, particularly those seeking to diversify their portfolios with an unprecedented level of security and simplicity.