SEC Reviews Canary SUI ETF as SUI Rises 53% in 30 Days

The U.S. Securities and Exchange Commission (SEC) has initiated a formal review of the Canary SUI ETF application, marking a significant step toward potential U.S. listing of the first exchange-traded fund tied to the SUI token. Canary Funds filed its proposal on March 17, 2025, with the Cboe BZX Exchange submitting a rule change request to list the fund under its Commodity-Based Trust Shares segment. The SEC published the filing in the Federal Register on April 25, triggering a 35-day public comment period [1].

The ETF, officially named the Canary SUI ETF, is designed to track the performance of SUI using the CoinDesk SUI USD CCIX 60-minute New York Rate as its benchmark. The trust will hold actual SUI tokens and value shares daily at 4:00 p.m. ET, mirroring the methodology of the index [1]. Despite regulatory progress, the SUI price remains relatively stable, trading at approximately $3.87 at the time of publication—a 0.4% decline from the prior 24-hour period. However, the token has gained 53% over the past 30 days, according to Coingecko data [1].

The SEC’s July 22 statement clarified that the proceedings do not reflect a decision on the ETF’s approval. The agency emphasized its focus on evaluating compliance with Section 6(b)(5) of the Securities Exchange Act, which mandates rules to prevent fraudulent practices and protect investors [1]. On June 4, the SEC extended its review period under Section 19(b)(2) of the Act, allowing additional time to assess the proposal’s implications [1].

Public stakeholders are invited to submit written comments addressing the adequacy of the Cboe BZX Exchange’s rationale for supporting the ETF. The SEC has 45 calendar days to approve, disapprove, or extend the review further. If extended, the total review window could reach 90 days. A formal proceeding may also occur, with a 21-day public comment period and a 14-day rebuttal phase. The agency must finalize its decision by December 25, 240 days after the Federal Register publication [1].

The SEC has requested commenters to identify potential risks associated with an SUI-linked ETF, including market integrity concerns. Oral presentations are not scheduled by default, though stakeholders may request them under Rule 19b-4. Written comments must be submitted within 21 days of the Federal Register notice [1].

Analysts note that the ETF’s approval could influence institutional adoption of SUI, though the token’s price trajectory suggests limited immediate impact from regulatory developments. The SEC’s cautious approach underscores its balancing act between fostering innovation and safeguarding investors, particularly in the volatile crypto market [1].

Sources:

[1] [title] SUI price holds steady as Canary’s SUI ETF application advances with SEC [url] https://coinmarketcap.com/community/articles/6880f4399fbe144b558172f2/