Bitwise files for spot SUI ETF as institutional race heats up

Bitwise files for a spot SUI ETF with Coinbase Custody, extending the race to launch regulated exposure to the Sui Layer 1 token in U.S. markets.

Bitwise Asset Management has submitted a filing to the U.S. Securities and Exchange Commission to launch an exchange-traded fund tracking SUI tokens, according to regulatory documents.

The proposed fund would provide investors exposure to the cryptocurrency’s value, net of operational expenses, the filing stated. Coinbase Custody Company has been designated as the fund’s custodian. The ETF’s ticker symbol and sponsor fee were not disclosed in the filing.

Several other asset managers have submitted similar applications. Canary Capital filed 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 earlier applications have received SEC approval as of the filing date.

SUI ranks 31st in market capitalization among cryptocurrencies and serves as the native asset of the Sui Layer 1 blockchain, which was spun out of Meta’s former Diem project, according to market data.

Crypto ETFs tracking assets including XRP, DOGE, and SOL have launched in recent months. The SEC under the Biden administration issued enforcement actions against major industry participants while maintaining a restrictive stance on crypto asset approvals.

Under current SEC Chair Paul Atkins, the agency has approved listing standards for select ETFs to streamline market access and has moved toward establishing regulatory clarity for digital assets, according to agency statements.

The filing reflects continued institutional interest in creating regulated investment vehicles tied to emerging crypto assets. Industry analysts have stated that approval of a SUI ETF could expand access for investors seeking exposure to Layer 1 blockchain tokens through conventional investment structures, potentially increasing adoption and liquidity in the market.