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- Canary Capital has registered an SUI ETF in Delaware, marking another step in expanding institutional crypto investment options beyond Bitcoin and Ethereum.
- SEC approval remains a key hurdle for the SUI ETF, as crypto-based ETFs outside Bitcoin and Ethereum face regulatory uncertainty in the U.S.
Canary Capital has registered an SUI-based exchange-traded fund (ETF) in Delaware. This move not only broadens the portfolio of the business but also shows the rising institutional investment in digital assets. Does this imply, therefore, that an SUI ETF will shortly hit the market? not rather quickly.
JUST IN: Canary Capital registers for a $SUI ETF in Delaware. pic.twitter.com/lDY7uKLZqQ
— Whale Insider (@WhaleInsider) March 7, 2025
Canary Capital’s Strategy in Crypto ETF Expansion
Canary Capital appeared to have a clear plan from the start: to offer ETFs for initiatives outside of Ethereum’s and Bitcoin’s predominance. Just one week after attempting to register for an ETF for XRP, they also filed for a Litecoin (LTC) before the SUI ETF registration. This indicates that they wish to give investors wishing to enter the crypto space a more extensive choice free from direct asset purchase.
Looking at their past actions, Canary Capital has actively established trusts for different digital assets in addition to seeking for an ETF. For instance, according to CNF prior report, they launched the AXL Trust to enable institutional investment in Axelar.
Fascinatingly, Axelar itself has been developing via several alliances, including one with Ripple that enhances XRPL network compatibility. Using a similar strategy, should the ETF be approved, SUI should also acquire like momentum.
SUI in the Spotlight: The Right Momentum?
The timing of Canary Capital’s action seems to be rather interesting for SUI. Designed to replicate the performance of the MarketVector Sui VWAP Close Index (MVSUIV), VanEck introduced the VanEck Sui Exchange-Traded Note (ETN), completely backed by SUI tokens in February. Investors thus actually show real demand for SUI-based financial solutions.
Furthermore, SUI’s price movement has also been quite impressive. As of press time, the token is swapped hands at about $2.83, up 6.38% over the last 24 hours. This increase has also driven its market cap to surpass the $8.9 billion mark. If this trend continues, it is possible that Canary Capital will become more confident in pushing the SUI ETF to the regulatory approval stage.
Regulatory Challenges: Will the SEC Agree?
Regulation is one major obstacle Canary Capital must overcome even if their action seems encouraging. In the United States, crypto-based ETFs devoid of Bitcoin or Ethereum have thus encountered major challenges to date. Although several previous proposals are currently under review, the SEC has not yet approved alternative asset-based crypto ETFs.
Moreover, forming a trust in Delaware does not imply the ETF is trading ready. It is merely the initial step enabling them to formally apply with the SEC. Past experience suggests that this process may take a really long period. Spot-based Bitcoin ETFs really only got approved after years of filings and revisions.
