Bitwise Seeks Approval for Spot SUI ETF as Institutional Competition Intensifies

Bitwise Asset Management has taken a significant step by submitting a proposal to the U.S. Securities and Exchange Commission (SEC) for the launch of an exchange-traded fund (ETF) that tracks SUI tokens. This move signals a growing race among financial institutions to offer regulated access to the Sui Layer 1 token within U.S. markets.

Key Takeaways

Bitwise has filed with the SEC to launch a spot SUI ETF, aiming to provide investors with a way to invest in SUI cryptocurrency.
Coinbase Custody Company is designated as the custodian for the fund.
Other asset managers, including Canary Capital and 21Shares, have also submitted similar ETF applications, but none have received SEC approval so far.
SUI is the native asset of the Sui Layer 1 blockchain, which emerged from Meta's former Diem project, currently positioned 31st in market capitalization among cryptocurrencies.
The SEC is cautiously navigating the realm of crypto asset approvals under Chair Paul Atkins, looking to offer clarity and streamline ETF listings.

Bitwise files for a spot SUI ETF tracking Sui Layer 1 token.

Main Content

Bitwise’s proposed ETF aims to offer investors exposure to the value of SUI, after accounting for operational costs, as stated in the filing. Specifics regarding the fund's ticker symbol and management fees have not been revealed as part of this application.

In March, Canary Capital became the first firm to submit a SUI ETF application. This was followed by 21Shares, which has recently launched its own product, the 21Shares 2x SUI ETF. As of the date of filing, none of these applications have received approval from the SEC.

SUI holds the 31st position in the market by capitalization and is recognized as the native digital asset of the Sui Layer 1 blockchain. This blockchain was originally part of Meta's Diem project, indicating its distinct position within the crypto ecosystem.

In recent months, several cryptocurrency ETFs focusing on assets such as XRP, DOGE, and SOL have been introduced to the market. However, the SEC has been stringent under the Biden administration, enforcing actions against key industry players while maintaining a strict stance on the approval of new crypto assets.

Under the leadership of SEC Chair Paul Atkins, the agency is now approving certain listing standards for selected ETFs, designed to improve market access and clarify regulations for digital assets, according to official statements from the agency.

The filing from Bitwise underscores the persistent interest from institutional players to develop regulated investment vehicles associated with up-and-coming crypto assets. Analysts emphasize that if a SUI ETF gains approval, it could significantly broaden investment access for those interested in Layer 1 blockchain tokens through established investment avenues, which may enhance both market adoption and liquidity.