Cboe Advances Canary's SUI ETF Plans With SEC Filing

Cboe has submitted paperwork to the SEC to advance crypto asset manager Canary's plans for a SUI exchange-traded fund (ETF). This move marks a significant step forward in the process of launching the ETF, which would provide investors with exposure to the SUI blockchain, a layer-1 network launched in May 2023. The SUI blockchain is designed to compete with established networks like Ethereum and Solana.

Canary Capital, based in Nashville, Tennessee, filed with the securities regulator last month as the initial step towards launching the SUI ETF. The next phase involves Cboe, the owner of the Chicago Board Options Exchange, awaiting a response from the SEC regarding the proposed product. Canary has also filed for several other altcoin ETFs, including funds for Pudgy Penguins, Solana, and XRP, which, if approved, would offer investors exposure to these cryptocurrencies without the need to buy and custody them directly.

The SUI network, developed by former Facebook engineers, utilizes a proof-of-stake consensus mechanism, similar to its major competitors SOL and ETH. The network supports various projects, including SatLayer, which offers Bitcoin staking, and is compatible with popular wallets like Phantom. Despite its potential, the SUI team has faced challenges, including allegations of insider trading in October 2022, which the team refuted. Additionally, the network experienced a two-hour outage in November due to a bug, highlighting the technical hurdles it has encountered.

The SEC is currently reviewing paperwork from several asset managers, including VanEck, 21Shares, and Bitwise, among others. These fund managers are seeking approval for ETFs focused on various digital coins and tokens, following the success of Bitcoin and Ethereum ETFs approved last year. The approval of a SUI ETF would further diversify the options available to investors interested in gaining exposure to the cryptocurrency market through regulated financial products.