SEC advances SUI ETF to critical stage, SUI token gains 44.7% as $4.00 resistance looms

The U.S. Securities and Exchange Commission has advanced Canary Capital’s proposal for a spot SUI Exchange-Traded Fund (ETF) to the “institution of proceedings” stage, a critical step toward potential regulatory approval for the Sui blockchain’s native token. The SEC’s decision, announced after a months-long review, indicates a growing openness to crypto-backed investment vehicles and has intensified speculation about a significant price move for SUI. The token currently trades at $3.95, above its 200-day moving average of $2.73 and nearing a key resistance level at $4.00 [1].

Canary Capital, which filed its S-1 registration with the SEC in March, has been joined by asset manager 21Shares in pursuing a spot SUI ETF. 21Shares recently partnered with the Sui Network to enhance institutional access to the Layer-1 blockchain protocol, underscoring the asset’s growing appeal to large investors. This dual filing highlights the broader trend of institutional interest in SUI-based products, particularly as the token’s futures open interest has surged to $1.2 billion—a figure that ranks SUI sixth among cryptocurrencies in this metric [2].

The SEC’s decision to advance Canary’s proposal comes amid a broader shift in the agency’s approach to crypto ETFs. While the regulator has paused reviews of other applications to establish a unified framework, the SUI ETF’s progress suggests a prioritization of applications meeting updated compliance standards. The proposed fund would track SUI’s price performance, a move that could enhance the token’s liquidity and legitimacy. Notably, the Bitwise Crypto Index ETF—recently approved by the SEC—includes SUI alongside major digital assets like Bitcoin and Ethereum, further cementing its role in the crypto market [3].

Technical indicators reinforce market optimism. SUI’s relative strength index of 66 suggests it remains in an upward trajectory, with analysts eyeing a breakout above $4.00. A successful move past this level could trigger a rally to $4.20–$5.00, and potentially $5.50–$6.00 if the ETF gains approval [4]. However, the SEC’s final decision remains contingent on addressing regulatory concerns around custody, market integrity, and investor protection. The agency’s cautious approach, exemplified by delays in approving physical redemption mechanisms for existing crypto ETFs, underscores the need for robust compliance measures in SUI’s proposal.

The SUI ETF’s potential approval could serve as a bellwether for the crypto asset class. If launched, it would demonstrate the feasibility of token-specific ETFs, encouraging similar applications for other blockchain-based assets. Conversely, regulatory hurdles could signal continued caution from the SEC regarding speculative cryptocurrencies. Investors are advised to monitor the agency’s public filings and market volatility, as the outcome will likely shape SUI’s trajectory and influence broader adoption of blockchain investment products.

Sources:

[1] [Canary's SUI ETF Enters SEC Review, Analysts Target August Breakout](https://coincentral.com/canarys-sui-etf-enters-sec-review-analysts-target-august-breakout/)

[2] [Cryptocurrency Market News Today](https://www.kucoin.com/news/category/market)

[3] [Sui ($SUI) Bullish Breakout, $5 Target in Sight](https://leapdigitalinvestments.com.au/)

[4] [Crypto Ahmet's Profile](https://www.binance.com/en/square/profile/crypto_ahmet)