Bitwise Makes Bold Play for Spot SUI ETF Approval – Wall Street’s Next Crypto Cash Grab?

Bitwise just fired the starting gun in the race to launch the first spot SUI ETF—and the stakes couldn't be higher.

Why it matters: After Bitcoin and Ethereum ETFs became Wall Street's golden geese, asset managers are scrambling to plant flags in the next big thing. SUI's layer-1 scalability narrative makes it prime real estate for speculators.

The inside game: Insiders whisper Bitwise's filing includes an unprecedented 'staking yield passthrough' structure—a move that could force competitors to rethink their entire playbook. Meanwhile, SEC lawyers reportedly groaned audibly during the preliminary review.

Bottom line: When traditional finance smells blood in crypto waters, you get innovation at gunpoint. Whether this ETF approval becomes a landmark victory or just another fee-extraction vehicle remains to be seen—but the suits are already circling.

Bitwise moves to secure spot Sui ETF approval

The ETF essentially follows the spot price of SUI (the native token of the Sui Network), the filing states. Sui is a LAYER 1 blockchain, introduced in mid-2023, that aims to accelerate transaction rates and provide scalable digital asset ownership.

Bitwise has not yet selected a ticker symbol for the ETF, should it receive approval for trading. Coinbase Custody is expected to serve as the fund’s custodian, continuing its role as a leading provider of crypto ETF services in the U.S. Despite a surge in crypto ETFs this year, no spot SUI ETF has yet launched domestically. Other firms are also working to fill that gap, with Canary Capital and 21Shares having filed for spot SUI ETFs in March and April, respectively.

Everybody is talking about these new stocks, particularly the 21Shares application, as the market awaits the SEC’s decision next month. The SEC approved a 21Shares 2x Leveraged SUI ETF in early May. A slew of new crypto ETFs have been listed recently, following the regulator’s creation of generic listing standards, which have made it easier for listings to occur across the industry.

Bitwise accelerates expansion of crypto ETF products

Bitwise is also expanding its crypto ETF lineup as the regulatory environment improves. Earlier this month, the firm added sui to the Bitwise 10 Crypto Index ETF, which is listed on the New York Stock Exchange. The addition signals Bitwise’s increased confidence in the Sui Network’s sustainability. 

The firm has recently described Sui as a blockchain that accelerates, is private, secure, and facilitates easy digital asset ownership. It aligns with Bitwise’s approach of backing networks that can drive genuine adoption at scale. Outside Sui, Bitwise is already selling spot Bitcoin and Ether ETFs. That move solidified its place in the ETF market but also created its spot XRP ETF this year to broaden its exposure to the highest-value crypto assets.  

Bitwise executives are forecasting a surge in crypto ETF launches. Bitwise researcher Ryan Rasmussen, in a recent interview with the Bankless podcast, said the firm is betting on ‘faster growth’ in 2026. He said over 100 crypto ETF products could emerge in rapid succession as issuers scramble for market share. “And now we’re going to accelerate forward at crazy speed,” Rasmussen said.  

With a market capitalization of around $4.98 billion, SUI is now the 31st largest cryptocurrency by market capitalization. Spot ETFs could drive massive demand for a token by increasing the exposure offered to a wider swath of investors.

Besides Bitwise, other platforms have also extended their application to the SEC, awaiting approval. With the current SEC leadership, the processes might be faster.

Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.