SUI Defies Market Volatility as Canary’s SUI ETF Clears Critical SEC Hurdle

Move over, Bitcoin—Wall Street's next crypto obsession is brewing. SUI, the native token of Sui Network, is holding its ground while traditional assets wobble, as institutional interest gets a green light.

SEC gives ETF hopefuls a reason to sweat

Canary Capital's SUI ETF application just survived regulatory scrutiny—a rare feat in the post-2023 crypto crackdown era. No approval yet, but the mere progress signals shifting winds. Traders are already front-running the paperwork, with SUI derivatives volume spiking 47% since the filing.

The 'accidental' institutional play

Funny how a blockchain designed for DeFi degens suddenly has BlackRock's alumni circling. SUI's proof-of-stake mechanics—once dismissed as 'VC-chain' baggage—now look like ETF catnip. Compliance teams love auditable staking yields more than anarcho-capitalist whitepapers.

Just don't call it a comeback (yet)

The SEC still holds the final axe—and they've crushed bigger dreams. But for now, SUI's price action smells like 2021's ETF mania. Whether this ends in champagne or tears depends entirely on how badly Wall Street needs a new narrative to sell.

SEC opens formal review process of Canary’s SUI ETF 

According to the SEC’s July 22 statement, the commission has instituted proceedings to determine if the Cboe exchange’s proposed rule change should be approved or denied. 

On June 4, 2025, the agency used its authority under Section 19(b)(2) of the Securities Exchange Act to extend the review period to assess the implications of allowing the ETF to trade.

“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the SEC noted in the filing. The agency plans to conduct a more in-depth analysis of whether the proposed ETF complies with Section 6(b)(5) of the Exchange Act.

This particular section requires that the rules of any national securities exchange “prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest.”

Review process starts 35-day public feedback and rebuttal proceedings

The Commission has opened the floor for public comment, encouraging interested parties to submit written data, arguments, and perspectives on the proposed ETF. Specifically, the SEC wants stakeholders to address the sufficiency of the Cboe BZX Exchange’s rationale for supporting the listing, as outlined in the original notice.

According to the Securities Exchange Act of 1934, the SEC has 45 calendar days to approve, disapprove, or extend the review period for the proposal. If additional time is needed, the agency can extend this period by another 45 days, bringing the total to 90 days. 

Should the Commission still require further analysis, it can institute formal proceedings inviting public comment and examination of the proposal. Once proceedings are instituted, the SEC typically sets a 21-day window for public comments and an additional 14-day period for rebuttals for stakeholders to weigh in.

It must approve or disapprove the proposed rule change within 240 calendar days from the date of publication in the Federal Register, which ends around December 25.

Additionally, the SEC has asked commenters to list any problems that might come up from listing and trading an ETF directly tied to the SUI token. Oral presentations will not be scheduled by default, but individuals can formally request such opportunities under Rule 19b-4.

Written comments on the proposal must be submitted within 21 days of the notice’s publication in the Federal Register. 

Per the SEC’s release, the SUI ETF is backed by the performance of SUI, as measured by the CoinDesk SUI USD CCIX 60-minute New York Rate. The trust will hold actual SUI tokens and will value its shares daily at 4:00 p.m. ET using the same methodology as the benchmark.

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