21Shares files with SEC for spot Sui ETF amid 'strategic partnership' with the Layer 1 network

21Shares filed an S-1 registration statement with the SEC on Thursday to launch a spot Sui exchange-traded fund in the U.S., alongside announcing a "strategic partnership" with the Layer 1 network.

The proposed ETF seeks to offer direct exposure to the price of SUI, the native cryptocurrency of the Sui network, held in custody by Coinbase, according to the filing, with the daily net asset value based on a benchmark index reflecting the spot market price of SUI and share creations and redemptions processed in cash rather than in-kind.

However, unlike other recently proposed crypto ETFs, the fund does not intend to stake any portion of its holdings to generate yield through network participation.

21Shares joins fellow asset manager Canary Capital in filing with the SEC for a spot Sui ETF in the U.S. "Given the speed and efficiency of the Sui chain, we believe it will be a destination for many future projects," Canary Capital CEO Steven McClurg told The Block at the time. 

The European asset manager, now increasingly focused on the U.S. market, has also filed applications for spot crypto ETFs related to XRP, Solana, Dogecoin and Polkadot in recent weeks. 21Shares already offers spot Bitcoin (with Ark Invest) and Ethereum ETFs in the U.S.

Sui is a Layer 1 blockchain designed for fast, low-cost transactions. Originally developed by Mysten Labs, a firm founded by former Meta employees, and using the Move programming language, Sui supports parallel transaction execution, making it well-suited for applications like gaming, NFTs and DeFi.

SUI is currently the 13th largest cryptocurrency with a market cap of $12.2 billion, according to The Block's Sui price page. SUI jumped around 4% to around $3.70 on Thursday morning immediately following the news. It is currently trading for $3.65.

SUI/USD price chart. Image: The Block/TradingView.

Strategic partnership with Sui

21Shares also announced it has entered into a "strategic partnership" with the Layer 1 network on Thursday, designed to "expand global reach as interest in the ecosystem continues to grow."

"Since our earliest research into Sui, we believed it could become one of the most exciting blockchains in the industry, and we're seeing that thesis play out," 21Shares President Duncan Moir said in the statement. "We operate based on conviction but also investor demand, and our planned roadmap with Sui is a reflection of both."

This partnership will include product collaborations, research reports and other initiatives, the firm said, arguing it highlights the growth of institutional interest in the Sui ecosystem. "With impressive speed, throughput, and scalability, Sui has become a destination for real-world asset tokenization, including stablecoins and DeFi," it added.

"Sui was designed to become the global coordination layer for digital assets," Mysten Labs President Kevin Boon said. "21Shares sees value in that work and is committed to making the ecosystem more accessible throughout the world."