Bitwise Joins the SUI ETF Race: Files for Spot Fund Alongside 21Shares and Canary Capital
The ETF gold rush for the next big layer-1 is officially on.
### The Institutional Stampede
Bitwise just threw its hat into the ring, filing paperwork for a spot SUI exchange-traded fund. They're not alone—21Shares and Canary Capital already have their own applications in the queue. Forget waiting for the old guard to approve Bitcoin; this is the new frontier, where funds are racing to wrap the most promising new blockchains in a tidy, tradable package for Wall Street.
### What's Really in the Filing?
The filings don't create the ETFs—they ask for permission. The core ask is simple: let us hold the actual SUI tokens in a vault so investors can buy a share of the action through their regular brokerage account. No complex futures contracts, no synthetic exposure. Just direct, spot-market access, the same model that finally got the green light for Bitcoin and Ethereum. It's a bet that institutional demand is ready to move beyond the big two.
### Why This Isn't Just Another Crypto Fund
This isn't about replicating past success. It's a targeted wager on a specific ecosystem. A SUI ETF would funnel pure, undiluted capital into one protocol's economy, its developer community, and its DeFi landscape. It bypasses the need for investors to navigate wallets and custody—handing that risk to regulated giants instead. Convenience has a price, of course, usually skimmed off in management fees that would make a traditional hedge fund manager blush.
The message is clear: the infrastructure players are placing their bets on which networks have staying power. The real test comes next—seeing if the market agrees, or if this is just another product in search of a problem that doesn't exist outside of a fund manager's sales quota.
Source: CoinMarketCap X
Bitwise Files for Spot SUI ETFs with SEC
The firm submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC) on December 19, 2025, to roll out the Bitwise ETF, a fund that WOULD track the token price, the native token of the blockchain.
The relocation puts the crypto asset manager in the same competition with Canary Capital, 21Shares, and Grayscale, all of which are looking towards the launch
The filing coincides with a period where institutional interest in altcoin ETFs is picking up, after the Bitcoin and ethereum ETFs were approved previously, and a wider regulatory trend of crypto-friendly structures.
What does the Bitwise plan offer?
According to the SEC filing, this ETF would provide investors with direct spot exposure to the tokens, rather than relying on futures or derivatives.
Coinbase Custody is named as the custodian, ensuring institutional-grade storage and security for the underlying tokens.
Source: SEC official website
One notable feature is the inclusion of staking rewards. If approved, the exchange-traded fund could earn additional tokens through staking, potentially enhancing returns for investors over time.
The filing also outlines in-kind creations and redemptions, meaning transactions could be settled directly in SUI instead of cash—an approach increasingly favored in modern Bitwise crypto ETFs.
Bitwise has not announced the ticker symbol and listing exchange of the exchange-traded fund yet.
Why SUI ETFs Are Gaining Attention?
The blockchain is a high-throughput layer-1 blockchain launched in 2023 and is aimed at scalability and high-throughput transaction processing. The project is currently among the top 35 cryptocurrencies in the world with a market capitalization of approximately $5 billion.
The growth has been further driven by the fact that the SEC recently approved a 2x Leveraged ETF by 21Shares, despite the fact that none of them is yet approved in the U.S.
Market Reaction to the Filing
After the news, the blockchain has regained its lost ground and increased by more than 4.5% at some point.
SUI price is currently trading at around $1.42, up 1.58% on the day with a high 24-hour trade volume of $1.08 billion and a market capitalization of $5.32 billion.
Although the token is still down every week, analysts consider filings as long-term movers as opposed to short-term price movers.
Source: CMC
Regulatory Outlook and What’s Next
The agency has also, under SEC Chair Paul Atkins, issued generic listing standards that have shortened ETFs approval period, which took up to 240 days to qualify a product, to as short as 75 days. This MOVE has already spurred a surge of altcoin ETFs applications, such as those based on XRP, SOL, and DOGE.
An official ruling on the application of 21Shares spot sui ETF is soon to come, which may lead to a precedent among others, such as Bitwise. With approvals proceeding at the same rate, a US-listed SUI ETF could soon be a reality and could enhance accessibility and liquidity to the ecosystem.
Conclusion
As the regulatory timelines become shorter and several issuers are competing, this can soon be launched in the U.S., which can increase liquidity, adoption, and long-term trust.
Disclaimer: This is not financial advice. Please DYOR before investing. CoinGabbar is not responsible for any financial losses. Crypto assets are highly volatile, and you can lose your entire investment.
