Grayscale has filed registration paperwork with the U.S. regulator to launch its own SUI‑linked exchange-traded fund, coming mere days after 21Shares brought the first U.S.-listed SUI fund online. The proposed fund is set up as a spot ETF, meaning it seeks to track the actual market price of SUI, minus fees and operating expenses.
Grayscale’s new filing indicates that the firm remains eager to gain a foothold in the digital-asset ETF market. The firm has been quietly adding single-asset ETFs throughout the year, making itself one of the most active issuers in the crypto-linked exchange-traded products space in recent months.
If approved, the Grayscale Sui Trust would enable investors to gain exposure in the Sui blockchain ecosystem in a compliant and secure manner. Investors would not need to purchase or store SUI tokens, nor would they need to take any action to secure them.
The filing highlights the growing momentum behind SUI. If approved, the Grayscale Sui Trust would be among the first U.S. securities to hold SUI assets exclusively. Modeled after the firm’s other single-asset products, the trust is designed to provide traditional investors with a regulated and familiar way to access emerging markets, such as cryptocurrency.
The premier products in their class are designed to provide investors with access to the U.S. market while substantially mitigating liability associated with tax obligations arising from distributions made throughout the year.
21Shares leads the race with first U.S. SUI-ETF launch
Grayscale’s filing comes just days after 21Shares caused a stir with the introduction of the first SUI-based ETP in the United States, which was announced on Tuesday.
The product, trading on Nasdaq under the ticker “TXXS,” is a leveraged ETF that seeks to generate 2x daily exposure to changes in the price of SUI. Instead of directly holding SUI, the fund uses derivatives to amplify gains and losses from those tools, which makes it especially suitable for active and short-term traders.
TXXS was the first blockchain-backed exchange-traded fund (ETF) in America, thus establishing trust in Sui’s network and signaling an early sign of faith in Sui’s network. Its first day turned out to be surprisingly strong, closing at a little over $24, and with more than 4,700 shares traded. Some analysts are saying that this launch marks a major milestone for altcoin-linked ETFs, boosting market optimism for SUI’s future in regulated markets.
It cleared the path for a new asset class in the ETF market and caused an avalanche of filings. Grayscale’s move, so soon after the index launched, suggests a fiercely competitive struggle to take early advantage of the SUI-dominant investment products.
Meanwhile, earlier this year, Canary Funds also submitted a filing to launch its own spot SUI fund.
SUI ETFs drive market shift and investor interest
Both 21Shares and Grayscale’s quick moves indicate a major shakeup in the digital-asset investment world. Bitcoin and Ethereum have long dominated the limelight in the ETF world, as growing excitement about other dedicated crypto products pressured issuers to become more competitive.
SUI-based offerings are emerging as new blockchain networks gain traction in the mainstream finance sector. The surge in attention around SUI reflects multiple trends reshaping investor participation in open-source cryptocurrency ecosystems.
Regulated products, such as spot SUI ETFs, are available to a wider swath of investors. And rather than dealing with foreign crypto exchanges, investors can purchase exposure to SUI within the same brokerage accounts they are leveraging for stocks and bonds. And it makes entry simpler, adding some of the safety and oversight that more traditional investors tend to require.
Additionally, the competition among multiple companies to list SUI funds suggests growing institutional confidence. Large asset managers often do not build products around networks that indicate little demand.
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