Nasdaq Initiates SEC Review for 21Shares SUI ETF, Marking Milestone for Sui Blockchain

A Significant Step for Sui Blockchain

Nasdaq has officially submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC), seeking approval to list the 21Shares SUI ETF. This filing marks a pivotal moment for the Sui blockchain, as it could become the first Layer 1 blockchain to have a spot ETF listed on a major U.S. exchange.

Institutional Momentum Behind Sui

The proposed ETF is designed to track the performance of SUI, the native token of the Sui blockchain. Sui is recognized for its high throughput and developer-friendly architecture, making it an attractive option for decentralized finance (DeFi), gaming, and enterprise applications. The filing follows 21Shares’ S-1 registration statement submitted in April, reflecting a deepening institutional embrace of the Sui ecosystem.

Over $300 million has already been invested in SUI-based exchange-traded products globally, indicating strong institutional confidence in the network. A successful U.S. listing would provide broader access to Sui’s innovative technology, potentially attracting more investors to the ecosystem.

Custody and Operational Details

The ETF would be a passive investment vehicle, tracking the price of SUI tokens without utilizing leverage or derivatives. BitGo and Coinbase Custody Trust Company are anticipated to serve as custodians, holding the SUI tokens on behalf of the trust. The fund aims to offer investors a regulated and secure method to gain exposure to SUI, aligning with the growing trend of institutional adoption in the cryptocurrency space.

Broader Implications for the Crypto Industry

This development underscores the increasing integration of cryptocurrency assets into traditional financial markets. If approved, the 21Shares SUI ETF would provide investors with a familiar and regulated product to gain exposure to the Sui blockchain, potentially paving the way for similar offerings for other cryptocurrencies.

The SEC’s review process will involve public comments and a thorough evaluation of the proposed ETF’s compliance with regulatory standards. While the outcome is not guaranteed, the initiation of the review process is a positive signal for the cryptocurrency industry, indicating a potential shift towards greater acceptance and integration of digital assets in mainstream finance.