The Securities and Exchange Commission (SEC) received a request from Canary to launch a spot ETF that will replicate the price of SUI. SUI is the official token of the Sui blockchain, created to be fast and scalable.
By using a spot ETF, investors can gain exposure to SUI without buying the underlying token. This aligns with broader institutional interest in cryptocurrency-backed financial products, as seen in JPMorgan's recent initiative to offer loans backed by BlackRock's Bitcoin ETF.
Therefore, it is not surprising that the SEC has been more conservative in approving spot cryptocurrency ETFs. It has accepted some cryptocurrency ETFs for futures trading, but these are not the only options investors are seeking.
The agency states that the reason for the delay is that it sees market manipulation risks and there is not enough protection for investors, a concern shared by exchanges like Binance, which recently adjusted its Alpha Points Program to combat bot abuse.
Canary stood out among other applications by suggesting an ETF based on SUI, a novelty for this type of ETF. Actors in the cryptocurrency sector considered it a breakthrough that encouraged greater use of digital assets.
The announcement did not lead to a significant drop in the price of SUI. Many did not expect the announcement to be a resounding yes or no.
