21Shares Files With Nasdaq to List Its Sui ETF

Nasdaq has filed Form 19b-4 with the U.S. SEC on behalf of 21Shares to list its Sui ETF. This filing initiates the regulatory review for trading shares of the fund on the stock exchange.

Nasdaq (NDAQ) has filed Form 19b-4 with the U.S. Securities and Exchange Commission (SEC) on behalf of 21Shares to list its Sui ETF.

This filing marks the official stage for the regulatory body to begin its review of the fund’s shares being traded on the stock exchange. It’s another step in 21Shares’ broader plan to provide institutions with exposure to the Sui token (CRYPTO: SUI) in a traditional investment vehicle.

21Shares Is Getting Closer To Launching Its Sui ETF

21Shares continues to make progress in launching its highly anticipated Sui ETF as it enlists Nasdaq to officially kickstart the regulatory process.

Earlier this month, 21Shares filed Form S-1 with the SEC to register the fund. Now, Nasdaq's Form 19b-4 signals the start of the Commission's 45-day decision-making timeline.

The Sui ETF aims to provide professional investors with a regulated means to gain exposure to SUI, the native digital asset of the Sui blockchain network, in a format familiar to institutional investors.

Nasdaq's application will allow the SEC to review and ultimately approve or reject the listing of the fund on its exchange. This development underscores the increasing demand for cryptocurrency-backed exchange-traded products in regulated markets.

If the SEC approves the listing, it will be a significant milestone for 21Shares in expanding its cryptocurrency ETF offerings. However, the timing of any potential approval remains uncertain, considering recent delays in the SEC's decisions on other crypto ETF applications.

Despite these broader delays, which industry analysts anticipate may last until later this year, 21Shares is one of only two firms actively pursuing approval for a Sui ETF. Firms like Defi Technologies (TSX:TECH,OTC:DTRNF) are also seeking to launch crypto ETFs in the U.S.

SUI Token Shows Slight Price Uptick After Nasdaq Filing

Following the Nasdaq filing, the SUI token was trading at around $3.64, showing a nearly 2% rise over the last 24 hours.

However, despite this short-term growth, the token was still down by 3% over the past week as investors reacted cautiously amid broader uncertainty around the regulatory approval process for the 21Shares fund.

This price movement comes amidst a recent security incident that impacted the Sui ecosystem. A report from blockchain analytics firm Behainal identified an exploit of Cetus, a protocol operating on the Sui chain, resulting in the theft of an estimated $223 million in crypto assets.

Cetus is a liquid staking protocol on the Sui network, offering users the ability to stake their SUI tokens and earn rewards while remaining liquid. The exploit targeted a math library bug in Cetus's code, enabling the attacker to withdraw funds from multiple protocols on the Sui ecosystem.

In response to the incident, the Sui network confirmed that the attack was a result of the math library bug in Cetus, not a flaw in the network itself. The network team has already frozen around $160 million of the stolen funds and is offering a $6 million reward for the recovery of the remaining amounts.

Furthermore, the network announced the establishment of a $10 million fund to enhance the security of the entire Sui ecosystem and restore confidence after the incident. These efforts will focus on identifying and mitigating vulnerabilities in protocols and educating users about best practices for cybersecurity.

The goal is to prevent future issues and maintain the focus on the long-term development of the Sui network and its role in the rapidly evolving Web3 landscape.