The traditional financial market in the U.S. is witnessing a new wave: ETF (Exchange-Traded Fund) funds for altcoins – cryptocurrencies that are not Bitcoin or Ethereum. Recently, a notable name has appeared on the waiting list: SUI, a relatively new but ambitious Layer-1 blockchain.
What events are happening?
#CanaryCapital – an asset management company based in Nashville, Tennessee – has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch an ETF fund dedicated to SUI.
Following this move, the Cboe exchange (Chicago Board Options Exchange) has also filed a proposal to change rule 19b-4 – a necessary step for the SUI ETF to be officially traded publicly. Cboe is currently awaiting feedback from the SEC.
This is part of the altcoin ETF wave that Canary Capital is launching. Besides SUI, they are also preparing other ETF funds related to Solana (SOL), XRP, and even… Pudgy Penguins – a famous NFT project.
Why is the SUI ETF noteworthy?
What is SUI?
Launched in May 2023, SUI is a Layer-1 blockchain designed to compete directly with Ethereum and Solana. It uses a proof-of-stake consensus mechanism and was developed by a team of engineers who previously worked at Facebook (Meta).Where is SUI currently located on the cryptocurrency map?
According to data from CoinGecko, the price $SUI is fluctuating around 1.98 USD, with a total market capitalization of approximately 6.4 billion USD, ranked 22 in the market.What is SUI achieving?
Some notable projects running on the SUI network include SatLayer – providing Bitcoin staking features. Additionally, Phantom wallet – popular with users $SOL and $BTC – has also integrated support for SUI.
But there are risks...
Although it is attracting attention, SUI has yet to overcome some significant challenges:
Insider trading allegations: In October last year, on-chain data showed a wallet believed to be linked to the Sui Foundation earned over 400 million USD in profits after a strong price surge. However, the development team has denied the allegations.
Network incident: Similar to Solana, SUI also experienced a downtime of about 2 hours in November 2023, when a serious bug caused the entire network to halt.
What will happen if the SUI ETF is approved?
#ETFSUI if approved, will become one of the first altcoins after Bitcoin and Ethereum to have its own ETF product in the U.S. – a significant step for both the SUI ecosystem and the crypto market in general.
ETFs help traditional investors access digital assets without needing to hold or self-custody tokens directly, thereby opening a new door for large capital flows from Wall Street.
Currently, the SEC is simultaneously reviewing several ETF applications from major names like VanEck, 21Shares, Bitwise... The success of the Bitcoin and Ethereum ETFs in 2024 is fueling hopes for the next digital assets.
Conclusion
The push for the SUI ETF by Cboe and Canary Capital is a positive signal showing that traditional financial markets are increasingly accepting crypto as a serious asset class. If approved, SUI could not only increase liquidity but also become a game-changing factor in the Layer-1 ecosystem.
For investors, ETFs are a gateway into crypto without needing to 'dive deep' into cold wallets, exchanges, or self-custody private keys. But with SUI – a young blockchain still facing many fluctuations – is this ETF an opportunity or a risk?
Risk warning: The cryptocurrency market is highly volatile and carries many risks. Investing in crypto-related products like ETFs requires careful consideration. This article is not investment advice.