Asset Manager Canary Capital Files With SEC To Launch Possible First Sui ETF

Canary Capital Group, a firm specializing in institutional crypto trading and asset management, submitted a filing to the Securities and Exchange Commission (SEC) on March 17 to launch a Sui (SUI) exchange-traded fund (ETF). Notably, the new filing could pave the way for the first SUI ETF in the United States as the SEC becomes more open to cryptocurrency and related products.

The news also stabilized SUI’s price, temporarily halting its downward trend amid a broader market dip. SUI’s price rose by over 3.10% as of publication, reaching $2.35 within 24 hours, according to CoinGecko.

Canary Capital CEO Highlights Sui Ecosystem Growth

Earlier in March, the “Canary Sui ETF” was registered through a Delaware portal, signaling the firm’s intention to file an official S-1 with the SEC. This marks Canary’s sixth crypto-focused ETF, following filings for Litecoin, Hedera, Axelar, XRP, and Solana.

As the firm moves forward with the Sui ETF, Steven McClurg, CEO of Canary Capital, highlighted the significant influx of developers into the Sui ecosystem. He attributed this growth to the platform’s rising popularity and its potential as a promising platform for building decentralized applications.

“Given the speed and efficiency of the SUI chain, we believe it will be a destination for many future projects. For a chain that has been in existence for less than two years, it is already a top 20 market cap token,” McClurg noted.

While Sui-related investment products are already available, none are ETFs. For instance, Grayscale Investments launched the Grayscale Sui Trust in August 2024, offering accredited investors exposure to SUI.

However, a Sui ETF would differ by publicly trading on stock exchanges like CBOE, NYSE, or Nasdaq, making it accessible to a broader range of investors.

What is Sui?

Sui, developed by Mysten Labs, a firm founded by former Meta employees, is a layer-1 (L1) blockchain designed to provide fast transactions, low fees, and scalability for Web3 applications. 

Unlike many conventional blockchains, Sui uses a unique Proof-of-Stake (PoS) system with the Narwhal & Tusk Byzantine Fault Tolerant (BFT) consensus mechanism. This combination significantly boosts speed and efficiency.

Additionally, Sui employs Move, a smart contract programming language based on Rust. This language plays a crucial role in enabling parallel transaction execution, which enhances the network’s transaction speed compared to traditional blockchains.