Canary Capital Seeks SEC Approval for Sui Cryptocurrency ETF Amid Regulatory Optimism

Canary Capital Group has submitted an application to the Securities and Exchange Commission (SEC) to launch the first exchange-traded fund (ETF) tied to the Sui cryptocurrency. This filing, made on March 17, 2025, marks the firm’s sixth cryptocurrency ETF application, following previous filings for ETFs tracking Solana, Litecoin, XRP, Hedera, and Axelar. Sui, the native token of the Sui Network, a layer-1 blockchain service provider, currently holds a market value of approximately $7.4 billion, placing it within the top 25 cryptocurrencies by market capitalization.

The application comes at a time of heightened optimism within the crypto sector, fueled by the election of President Donald Trump. Trump’s administration has promised to ease regulatory enforcement against cryptocurrency businesses, creating a more favorable environment for digital assets. Canary Capital CEO Steven McClurg expressed his optimism about the changing regulatory landscape, stating that the mood among cryptocurrency market participants has shifted significantly since the election. He believes that many of these ETFs could be approved before the end of 2025.

McClurg also emphasized the growing importance of the Sui blockchain, noting a significant influx of developers into the SUI ecosystem. He highlighted the speed and efficiency of the SUI chain, predicting that it will become a destination for many future projects. This optimism is further supported by Sui’s recent partnership with World Liberty Financial, a decentralized finance project linked to President Trump. The partnership includes adding Sui to World Liberty’s “Macro Strategy” token reserve, further solidifying Sui’s position in the market.

Despite its recent price fluctuations, Sui has shown resilience and potential for growth. While it has fallen from its January 5 all-time high, it has also demonstrated short-term gains, trading up 1.3% over the last day. Sui’s relatively new status, having been created by Mysten Labs, a company founded by former Meta employees, has not hindered its rapid ascent in the cryptocurrency ecosystem. Grayscale Investments has already launched the Grayscale Sui Trust, a private investment vehicle offering Sui exposure to accredited investors. The proposed Canary Sui ETF would differ by trading on a public stock exchange, making it accessible to a broader range of investors.

To gain approval, Canary must file a Form 19b-4 with the SEC. This filing does not yet include information on which exchange the ETF would trade on or its proposed ticker symbol. Industry observers note that the SEC is unlikely to approve new ETFs until Paul Atkins, Trump’s nominee for SEC chair, is confirmed. A Senate confirmation hearing for Atkins is reportedly scheduled for March 27, having been delayed due to issues with financial disclosures. The crypto industry has already seen some regulatory relief under the new administration, with regulators dropping enforcement actions against several large cryptocurrency companies and considering scrapping rules proposed by the previous administration.

Since the approval of Bitcoin and Ethereum ETFs in 2024, issuers have filed for regulatory approval to list ETFs on at least 10 additional cryptocurrencies. The most popular new coins among issuers are Solana and XRP, each with six ETF applications pending with the SEC. This trend reflects the growing interest in diversifying investment options within the cryptocurrency market, with Sui emerging as a notable player in this evolving landscape.