Canary Capital has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch the country’s first SUI exchange-traded fund (ETF).
The filing, which follows the firm’s recent Delaware trust registration, comes at a time of increasing institutional interest in the Sui blockchain.
Meanwhile, World Liberty Financial’s decision to add SUI to its reserves has already triggered a price surge. Could this ETF mark a turning point for SUI’s adoption in mainstream finance?
Why Canary Capital Is Betting on a SUI ETF
SUI, the native asset of the Sui blockchain, has been gaining traction for its ability to handle high-speed transactions with impressive scalability.
Developed by Mysten Labs, the layer-1 network has seen growing adoption in gaming and decentralised finance.
Despite SUI-based exchange-traded products (ETPs) already being available in Europe, offered by Valour and 21Shares, Canary Capital’s filing represents the first attempt to bring an ETF for the token to U.S. markets.
The proposed ETF would function as a trust, with Canary Capital planning to stake part of its holdings to establish validator nodes. While this could generate staking rewards, it also introduces potential taxation concerns that may affect investor returns.
Canary Capital previously registered a statutory trust in Delaware on March 6, signalling its intent before submitting the official S-1 filing.
However, the firm still needs a 19b-4 form to be filed by an exchange willing to list the ETF, though it has yet to disclose which exchange will take up the role.
Further boosting SUI’s presence in institutional finance, World Liberty Financial, a crypto-focused venture linked to Donald Trump’s family, recently announced that it would add Sui assets to its reserves and explore new product development opportunities. This move has helped solidify SUI’s growing reputation as an institutional-grade digital asset.
Canary Capital’s Expanding ETF Strategy
Canary Capital has been aggressively expanding its ETF portfolio, filing for multiple crypto investment products to establish itself as a leader in the altcoin ETF market.
In addition to SUI, the firm has applied for ETFs tied to Litecoin (LTC), Solana (SOL), XRP, and Hedera (HBAR).
The firm’s approach aligns with a broader industry trend, as other major players, including Grayscale, 21Shares, and Hashdex, also push for altcoin ETFs.
Grayscale, for example, has submitted applications for Litecoin, Dogecoin, and Solana ETFs. At the same time, Hashdex seeks to expand its Nasdaq Crypto Index ETF to include assets such as Cardano, Chainlink, and Avalanche alongside Bitcoin and Ethereum.
If approved, the SUI ETF would provide U.S. investors with a regulated way to gain exposure to the token without having to buy and store it directly. The SEC’s stance on altcoin ETFs remains a significant barrier, but Canary’s persistence suggests growing confidence in regulatory progress.
Conclusion
Canary Capital’s filing for an SUI ETF signals a major step forward for altcoin investment in the United States.
With institutional backing from entities like World Liberty Financial and a strong use case within the blockchain ecosystem, SUI’s inclusion in an ETF could help legitimize the token for mainstream investors.
While SEC approval remains uncertain, this move underscores the increasing demand for regulated crypto investment products. If successful, Canary Capital could be setting the stage for a new wave of altcoin ETFs in the U.S. market.