Nasdaq submitted the 19b-4 form to the U.S. Securities and Exchange Commission (SEC) for the listing of the 21Shares SUI ETF.
This move represents a crucial step toward introducing the Spot ETF for SUI to the U.S. markets, even as the network recovers from recent ecosystem issues.
The rise in indicators strengthens the approval stance for the SUI exchange-traded fund.
The filing, which was published in the SEC's register, initiates the official review process for what could be one of the first alternative cryptocurrency ETFs in the U.S. after Ethereum.
In a blog post, the SUI Foundation stated that this filing marks the official start of the review process for the U.S. ETF proposed by the SUI Foundation.
"The submission of the 19b-4 form, which has now been officially published in the SEC's public register, marks the official start of the review process," read an excerpt from a blog.
This filing follows the exemplary S-1 filing by 21Shares in April. It represents an important step toward institutionalizing the Sui system.
With over $300 million already invested globally in SUI-based exchange-traded products, particularly through listings on the Euronext Paris and Amsterdam exchanges, the demand for regulated exposure in the U.S. is increasing.
The unique technological infrastructure of Sui has contributed to its growth. Its object-oriented programming and horizontally scalable infrastructure support a variety of use cases, ranging from decentralized finance (DeFi) and gaming to real-world asset (RWA) tokenization.
Ecosystem metrics reflect this momentum. According to DeFiLlama, Sui ranks eighth in terms of total value locked (TVL), with the value of assets currently traded across its platforms at $1.94 billion.
The market capitalization of stablecoins has risen to over $1.1 billion, an increase of over 190% since the beginning of the year. Similarly, the volume of stablecoin transfers on the Sui blockchain exceeded $110 billion in May alone.
SUI recovers after the Cetus breach incident.
A report was made about a $260 million breach of the Cetus network on the Sui network. This event led to the freezing of the network amid concerns about decentralization. In the midst of this controversy, the Sui network also faced criticism for the controversial $162 million recovery plan for Cetus.
Cetus is a major decentralized exchange (DEX) and concentrated liquidity protocol within the Sui and Aptos ecosystems. The network has since recovered, and its TVL value has increased, reassuring participants about the protocol's resilience.
The platform plays a pivotal role in supporting traders, liquidity providers, and DeFi applications built on Move-based blockchains like Sui.
For Sui, its efforts to restore user confidence included a comprehensive security overhaul costing $10 million. It sought to instill shared responsibility and direct support for decentralized application developers to prevent any future security vulnerabilities.
In this context, the price of SUI shares has rebounded. It has risen 18% since the beginning of June and is trading at $3.47 at the time of this report. This represents a slight increase of nearly 2% over the past twenty-four hours.
Kevin Boon, the head of Mysten Labs, stated that the Sui ecosystem has become a major destination for serious developers and institutions.
"...The completion of the Nasdaq filing is a pivotal moment. We are proud to help 21Shares build a world that allows every investor access to SUI," read an excerpt from a blog, quoting Boon.
This step also feeds into the growing speculation about the "summer of alternative cryptocurrency ETFs" more broadly, with Bloomberg analyst Eric Balchunas taking that into account.
However, when asked about potential demand, Balchunas clarified that not all alternative cryptocurrency ETFs would be able to match the level of demand that Bitcoin ETFs have seen.
"The further you stray from BTC, the fewer assets you have," Balchunas noted.
He also pointed out that the aggressive filing for Solana could expedite the timeline the SEC will take to make decisions on alternative cryptocurrency ETFs.
In the meantime, the U.S. Securities and Exchange Commission has postponed its decision on the Hedera ETF request, extending the comment period.
SEC Chairman Paul Atkins stated, "The Commission believes it is appropriate to establish a longer period for action on the proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised therein."
While the market remains cautiously optimistic, the progress made by the 21Shares SUI ETF represents an important moment in the widespread adoption of alternative layer-one ecosystems.
It remains to be seen whether Sui will become the next major asset class to break into the financial market; however, institutional demand appears ready at this time.
