21Shares Files with the SEC to Launch a Spot Sui (SUI) Exchange-Traded Fund

Asset manager 21Shares has filed for an S-1 registration with the Securities and Exchange Commission to launch a spot exchange-traded fund that tracks Sui (SUI).

The proposed ETF, to be listed on the New York Stock Exchange, will provide direct exposure to the cryptocurrency's market price, with assets held in custody by Coinbase, according to the filing.

Its daily net asset value (NAV) will be based on a benchmark index tracking spot prices, and like other US-approved crypto ETFs, shares will be created and redeemed through cash settlements, not in-kind.

Notably, the fund does not include a staking component, in contrast to similar applications from other issuers such as Canary Capital, which has also filed for a spot Sui ETF with staking.

21Shares is also planning to launch ETPs linked to Solana, XRP, Dogecoin, and Polkadot in Europe, according to the filing.

The applications come amid a broader push by asset managers to get bitcoin and other cryptocurrencies approved as underlying assets for ETFs in the US.

Earlier this year, the SEC approved the first spot bitcoin futures ETFs from asset managers such as Invesco and Galaxy Holdings.

However, despite several filings over the past few years, the agency is yet to approve any applications for spot bitcoin or other crypto ETFs.

Earlier this week, the SEC began reviewing a new filing from Bitwise Asset Management for a bitcoin ETF, while also postponing a decision on a filing from Grayscale.

The proposals from 21Shares and other asset managers will now be subject to a 75-day approval period, which could be extended in certain cases.

As of April 25, the existing European ETPs linked to Sui had a combined $400 million in assets under management, according to the latest data from CoinShares.

These investment vehicles also appear to be attracting strong investor interest—to date in 2024, the Sui-linked ETPs have seen net inflows of $72 million, including a notable $20.7 million influx in just the past week.

SUI is currently the 11th largest cryptocurrency, with a market cap of $12.3 billion.

The filing for a Sui ETF adds to a wave of more than 70 crypto ETF filings that are currently pending with the SEC.

Asset managers such as Bitwise, Grayscale, Franklin Templeton, and REX Shares have submitted filings for spot ETFs tied to Solana, XRP, Dogecoin, Cardano, Avalanche, Hedera, Litecoin, and Polkadot.

21Shares, a Switzerland-based manager, is already active in the US market through its spot Bitcoin and Ethereum ETFs, launched in partnership with Ark Invest.

It has recently expanded its ETF ambitions, submitting applications tied to XRP, Solana, Dogecoin, and Polkadot.

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the Solana and Litecoin ETF proposals have a 90% chance of approval, followed by XRP with an 85% chance.

Meanwhile, the Dogecoin and Hedera ETF proposals have an 80% chance of approval.

The growing flurry of filings comes as the SEC appears to be taking a more permissive approach to cryptocurrencies under the Trump administration.

With Paul Atkins—a long-time industry ally—now chairing the SEC, the agency has dropped multiple lawsuits and initiated public dialogue with crypto firms, suggesting a shift in stance from the previous administration.