Cboe files to list first US SUI ETF as interest in altcoin funds grows
Cboe BZX exchange has filed a 19b-4 application for an SUI exchange-traded fund (ETF). The exchange submitted the paperwork to the Securities and Exchange Commission (SEC) on April 8, setting the stage for the first SUI ETF in the US.
The 19b-4 filing notified the SEC of the proposed rule change that will allow Cboe to finally list and trade the SUI ETF. The regulator must review the filing within 45 days, subject to extension, and can choose whether to accept or deny it.
Canary Capital files for SUI ETF
Per the filing, the ETF will track SUI performance using the Coindesk SUI USD CCIX 60 Min NY Rate. The filing also included general information regarding how the ETF will avoid fraud and market manipulation.
Interestingly, the filing stated that there is a likelihood that some of the token holdings will be staked with some or all of the rewards going to the Trust and treated as income.
It said:
“The Sponsor may stake, or cause to be staked, all or a portion of the Trust’s SUI through one or more trusted staking providers. In consideration for any staking activity in which the Trust may engage, the Trust would receive all or a portion of the staking rewards generated through staking activities.”
While the Canary Capital Sui ETF application is the first aiming to go public, the firm is not the only one that has shown interest in launching a fund tracking the price of SUI. Leading digital assets manager Grayscale, also launched an SUI Trust earlier this year and will most likely convert it to an ETF once there is a sign that the SEC will approve the product.
The interest in SUI is unsurprising, given that the blockchain network saw substantial growth last year, enough to impact its price. However, the token and the rest of the market have suffered a massive drop this year. SUI is trading at $1.917, representing a 55% drop in its value year-to-date.
Altcoin ETFs pile up as investors wait for SEC
Meanwhile, the SUI ETF is only one of several ETF applications that Canary has filed. The firm, which does not have any ETF listed yet, has been busy filing for altcoin ETFs and has similar applications for Litecoin, XRP, Hedera, Solana, and even PENGU.
The plethora of ETF applications from Canary is only one part of the story, as other firms have also been applying for ETFs for altcoins and memecoins, leaving the regulator with dozens of pending requests. However, the regulator has yet to signify whether it would approve or deny these applications.
Nevertheless, all signs point to a potential approval, with the SEC already dropping lawsuits in which it classified cryptocurrencies as securities or opposed staking. The agency has also issued guidance on the status of several digital assets and showed its commitment to collaborating with industry participants.
A bigger problem for altcoin ETFs is whether they can generate sufficient interest from investors, especially in the current market. Available data shows that investors might still have interest even if it is far below that of spot Bitcoin ETFs.
The newly launched 2x XRP ETF from Teucrium XXRP recently generated $5 million in trading volume on its first day of trading, a number that Bloomberg ETF analyst Eric Balchunas believes is respectable given market conditions.
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Cboe files to list first US SUI ETF as interest in altcoin funds grows
Cboe BZX exchange has filed a 19b-4 application for an SUI exchange-traded fund (ETF). The exchange submitted the paperwork to the Securities and Exchange Commission (SEC) on April 8, setting the stage for the first SUI ETF in the US.
The 19b-4 filing notified the SEC of the proposed rule change that will allow Cboe to finally list and trade the SUI ETF. The regulator must review the filing within 45 days, subject to extension, and can choose whether to accept or deny it.
Canary Capital files for SUI ETF
Per the filing, the ETF will track SUI performance using the Coindesk SUI USD CCIX 60 Min NY Rate. The filing also included general information regarding how the ETF will avoid fraud and market manipulation.
Interestingly, the filing stated that there is a likelihood that some of the token holdings will be staked with some or all of the rewards going to the Trust and treated as income.
It said:
“The Sponsor may stake, or cause to be staked, all or a portion of the Trust’s SUI through one or more trusted staking providers. In consideration for any staking activity in which the Trust may engage, the Trust would receive all or a portion of the staking rewards generated through staking activities.”
While the Canary Capital Sui ETF application is the first aiming to go public, the firm is not the only one that has shown interest in launching a fund tracking the price of SUI. Leading digital assets manager Grayscale, also launched an SUI Trust earlier this year and will most likely convert it to an ETF once there is a sign that the SEC will approve the product.
The interest in SUI is unsurprising, given that the blockchain network saw substantial growth last year, enough to impact its price. However, the token and the rest of the market have suffered a massive drop this year. SUI is trading at $1.917, representing a 55% drop in its value year-to-date.
Altcoin ETFs pile up as investors wait for SEC
Meanwhile, the SUI ETF is only one of several ETF applications that Canary has filed. The firm, which does not have any ETF listed yet, has been busy filing for altcoin ETFs and has similar applications for Litecoin, XRP, Hedera, Solana, and even PENGU.
The plethora of ETF applications from Canary is only one part of the story, as other firms have also been applying for ETFs for altcoins and memecoins, leaving the regulator with dozens of pending requests. However, the regulator has yet to signify whether it would approve or deny these applications.
Nevertheless, all signs point to a potential approval, with the SEC already dropping lawsuits in which it classified cryptocurrencies as securities or opposed staking. The agency has also issued guidance on the status of several digital assets and showed its commitment to collaborating with industry participants.
A bigger problem for altcoin ETFs is whether they can generate sufficient interest from investors, especially in the current market. Available data shows that investors might still have interest even if it is far below that of spot Bitcoin ETFs.
The newly launched 2x XRP ETF from Teucrium XXRP recently generated $5 million in trading volume on its first day of trading, a number that Bloomberg ETF analyst Eric Balchunas believes is respectable given market conditions.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
Read More