Nasdaq has submitted paperwork to U.S. securities regulators seeking approval to list an exchange-traded fund backed by the Sui cryptocurrency, the latest move in a growing push to bring alternative digital assets to mainstream investors.
The Form 19b-4 filing was submitted to the Securities and Exchange Commission on June 10, would create the 21Shares SUI ETF — a fund that tracks the price of SUI tokens from the Sui blockchain network. The proposal marks another test of regulators’ willingness to approve cryptocurrency investment products beyond Bitcoin and Ethereum.
Sui, developed by Mysten Labs, operates a blockchain network designed for decentralized finance applications, gaming and digital asset trading. The network has attracted more than $300 million in investment through similar products already trading in Europe.
The filing comes as Sui recovers from a major security breach in May, when hackers exploited a vulnerability in the Cetus trading protocol and stole $223 million. Sui’s development team froze $160 million of the stolen funds and invested $10 million in security improvements.
Trading activity in SUI tokens surged following the ETF announcement, with daily volume jumping 300% to $1.01 billion, according to market data provider Coinglass. The token’s price rose 18% in early June to $3.47.
The SEC has increasingly scrutinized cryptocurrency investment products, though it approved spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May. Regulators have cited concerns about market manipulation and investor protection in past rejections of similar proposals.
Industry analyst Eric Balchunas expect the review process to extend into late 2025, with no guaranteed approval. The filing coincides with pending applications for ETFs tracking other cryptocurrencies including Solana, which some analysts predict could receive approval as early as July.
Kevin Boon, president of Mysten Labs, called the Nasdaq filing “a powerful moment” for the network, which has seen its total locked value rebound to $1.94 billion after the May hack.
The Sui network processes transactions using what developers call an “object-centric” architecture that allows multiple operations to run simultaneously, distinguishing it from older blockchain designs that process transactions sequentially.
If approved, the fund would join a small but growing list of cryptocurrency ETFs available to U.S. investors, potentially opening institutional investment in what proponents call the next generation of blockchain technology.
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