Asset Manager Canary Capital Submits Form 19b-4 for Sui ETF. Will SUI Impress?

Asset management firm Canary Capital has submitted Form 19b-4 to the United States Securities and Exchange Commission (SEC), signaling its intention to launch an exchange-traded fund (ETF) based on Sui (SUI), the rapidly growing layer-1 blockchain network.

The latest filing signals a significant milestone in the continued push for institutional adoption of digital assets. The proposed Sui ETF would allow traditional investors to gain exposure to the performance of the Sui blockchain without the complexities of directly holding cryptocurrency.

A Form 19b-4 is required to create a new security, specifically for exchange-traded products like ETFs, which must be approved by the U.S. SEC. Canary’s decision to file for a Sui-based ETF highlights growing interest in blockchain technologies.

According to the recent filing, the U.S. exposure to SUI via OTC SUI funds and digital asset exchanges has surged into the billions, with a fully diluted market capitalization exceeding $22.5 billion.

The Form 19b-4 noted that approving the proposal would allow the commission to offer investors from the U.S. a regulated and transparent way to engage with SUI through an exchange-traded vehicle, which would help mitigate risks.

Why Sui?

Sui, developed by Mysten Labs, is a highly scalable and low-latency blockchain platform designed to support decentralized applications (dApps) and Web3 solutions. Its consensus mechanism allows for parallel transaction execution, making it significantly faster and more efficient than many of its counterparts. 

Ultimately, Canary Capital’s ETF would allow institutional investors to tap into the growth of the Sui ecosystem without directly purchasing SUI tokens. The filing also noted that the growing fragmentation of SUI trading platforms, combined with the rising popularity of SUI—evidenced by higher user participation and trading volumes—along with the SUI Network, makes it increasingly challenging to manipulate SUI prices through ongoing trading activity.

Moreover, the connection between SUI markets and the presence of investors who take advantage of market inefficiencies across these markets implies that altering the price of SUI on any individual platform would necessitate influencing the global SUI price to have any meaningful impact. 

Meanwhile, following the latest development, the SUI token experienced a notable price decline. It is currently trading at $1.96, reflecting a 3.5% decrease over the past 24 hours, which is largely attributed to the ongoing market correction. The current market correction also highlights the inherent volatility of the crypto market.