Bitwise Targets Regulated SUI Exposure With ETF Filing

Bitwise Asset Management has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) tracking the SUI token, according to regulatory documents.

The suggested ETF would provide traders with exposure to the price of the native token, SUI, of the Sui Layer 1 blockchain and the returns would be net of operational costs. Coinbase Custody Company is the selected custodian of the fund. The filing failed to reveal the ticker symbol of the ETF and the sponsor fee.

Competition Intensifies Around SUI ETFs

Bitwise’s move adds to a growing list of asset managers seeking regulated exposure to SUI in U.S. markets. Canary Capital submitted the first SUI ETF application in March, followed by 21Shares, which recently launched the 21Shares 2x SUI ETF, according to regulatory filings. None of the SUI-related ETF applications have received SEC approval so far.

SUI currently ranks 31st by market capitalization among cryptocurrencies, based on market data. The token powers the Sui blockchain, a Layer 1 network that emerged from Meta’s former Diem project and is designed for high-throughput applications.

Shifting Regulatory Landscape for Crypto ETFs

It is filed after crypto ETFs tracking XRP, Dogecoin (DOGE), and Solana (SOL) assets, among others, have been launched in recent months.

The SEC under the Biden administration took enforcement action against a number of large participants in the crypto industry, and continued to be skeptical in granting approvals to new products in the digital asset industry.

Since Paul Atkins took over the position of SEC chair, the SEC office has authorized listing standards in some ETFs in an attempt to simplify access to the market. SEC has also indicated intentions to bring more precise regulatory guidance of digital assets, as reported by the agency.

Institutional Interest Continues to Grow

According to industry analysts, the Bitwise SUI ETF filing reflects the long-term institutional interest in regulated crypto investment funds. A licensed spot SUI ETF would provide more access to investors interested in owning Layer 1 blockchain tokens in the form of a conventional investment product, which may lead to increased liquidity and trading volume.

Although there is yet to be approval, the increasing filing numbers indicate that asset managers believe the demand of the diversified crypto ETF offerings will keep increasing as regulation becomes clear.