Canary Capital adds SUI ETF to its pile of SEC altcoin applications

Canary Capital filed an S-1 registration form with the United States Securities and Exchange Commission (SEC) as part of its application to issue an SUI exchange-traded fund (ETF). Canary is a frequent crypto ETF applicant. This would reportedly be the first SUI ETF in the United States. 

The Canary SUI ETF would be structured as a trust. Canary stated that it intended to stake some of its SUI through providers that will enable the trust to establish validator nodes. Staking leads to possible taxation in connection with staking rewards.

Investors can get SUI in different ways

SUI is the native token of the Sui network, a layer-1 blockchain that was developed by Mysten Labs. According to the S-1, its transaction speed and scalability make it suitable for gaming and high-frequency trading.

Canary telegraphed its intentions to create the ETF when it registered a Canary SUI ETF statutory trust in Delaware on March 6. Before an ETF can be launched, the exchange that will host it has to file form 19b-4 with the SEC. That form requests changes in the rules for the exchange that would allow the new ETF to be listed. Canary did not specify an exchange in its S-1.

Although this is the first suggestion of a SUI ETF in the United States, exchange-traded product issuer Valour has a SUI product on Sweden’s Spotlight Stock Market denominated in Swedish kronor. In addition, Switzerland-based 21Shares offers a SUI staking ETP.

VanEck offers a SUI exchange-traded note (ETN). An ETN also tracks an asset but, unlike an ETF, the issuer does not own any of the assets. Sui and Franklin Templeton announced a “strategic partnership” in November, although it was not clear what the goals of that partnership were.

Grayscale has a SUI exchange-traded note (ETN) The ETN tracks the price of SUI but is a closed fund, whereas an ETF is open-ended.

On March 6, World Liberty Financial, the decentralized finance protocol linked to the family of U.S. President Donald Trump, announced that it would include SUI in its strategic reserves and it explore product development opportunities with Sui.

Canary Capital has big altcoin ambitions

The SUI ETF is not the only first Nashville-based Canary has stocked up. In December, it was the first to apply for an LTC (Litecoin) ETF. Canary Capital has filed with the SEC for several crypto ETFs, including Hedera, Solana, and XRP. Canary also runs a digital asset fund that invests in digital assets and crypto equity funds whose prices have fallen below their net asset value.

Altcoin ETFs may become more common. For example, Grayscale has applied for Litecoin, Solana, XRP, and Dogecoin ETFs, while 21Shares is also looking into Solana, XRP, and Polkadot ETFs.

Hashdex applied to the SEC to expand its Hashdex Nasdaq Crypto Index US ETF to include Solana, XRP, Cardano, Chainlink, Avalanche, Litecoin and Uniswap in addition to Bitcoin and Ethereum.

Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More