Canary Capital has submitted a filing with the Securities and Exchange Commission (SEC) through the Cboe BZX Exchange to launch a spot SUI exchange-traded fund (ETF). The proposed fund would aim to track the performance of SUI, a cryptocurrency tied to a blockchain that launched in May 2023. Developed by former Facebook engineers, SUI operates on a unique dual-layer consensus mechanism called Narwhal and Bullshark.
Currently, SUI has a market capitalization of roughly $6.7 billion, making it the 21st-largest cryptocurrency by market cap. Its fully diluted market cap exceeds $22.5 billion. If approved, the SUI ETF would be the first to track the cryptocurrency directly. The fund may also include staking provisions, potentially allowing it to earn rewards from staking portions of its holdings through trusted providers.
Canary Capital, based in Nashville, initially filed its registration statement with the SEC in March and followed up with a formal proposal for the SUI ETF. The filing, which was made through Cboe, includes several safeguards designed to prevent fraud and manipulation, similar to protections implemented for Bitcoin and Ethereum ETFs.
The SUI token has been making significant strides in decentralized finance (DeFi), with numerous projects launching on its blockchain. One such project, DeepBook, is scheduled to launch its DEEP token on October 14. Additionally, Bitcoin restaking platform SatLayer integrated with the SUI network in December, enabling Bitcoin to be used in DeFi applications on SUI’s fast transaction platform. This integration is expected to further boost the growth of the DeFi ecosystem on the blockchain.
Despite its growth, SUI has faced some setbacks. In October, the project addressed insider trading concerns after on-chain data suggested that a wallet associated with the Sui Foundation had profited from a sharp price surge in the SUI token. The network also experienced a brief outage in November, halting activity for two hours due to a bug.
The filing for a SUI ETF is part of a broader strategy by Canary Capital to introduce multiple crypto ETFs. The firm has already filed for other funds targeting cryptocurrencies such as 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.
Additionally, Canary Capital’s move coincides with a partnership between World Liberty Financial (WLFI) and the Sui blockchain. WLFI, a crypto venture backed by President Trump, is collaborating with Sui to develop new products and integrate Sui-based assets into its Macro Strategy fund.
As the SEC continues to review multiple cryptocurrency ETF proposals, the approval of Bitcoin and Ethereum ETFs has already set a precedent, making the approval of SUI and other crypto ETFs a key area of focus for the regulatory body.
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