- Canary’s push for SUI ETF highlights growing efforts to merge crypto with traditional finance.
- The SEC stated that it needs more time to review the filing due to safety and price risks.
- 21Shares filing regarding SUI ETFs shows rising interest in regulated crypto products.
The U.S. Securities and Exchange Commission has postponed its ruling on Canary Capital’s Spot SUI ETF proposal. The ETF aims to offer regulated exposure to the Sui blockchain’s native token without requiring investors to hold it directly. Investors and market analysts continue waiting for an update, as the delay raises more questions than answers.
Canary’s SUI ETF Targets Institutional Access
Canary Capital is developing the first Spot ETF linked to the Sui blockchain’s SUI token, a fast and scalable digital asset. The ETF would allow investors to trade SUI indirectly through traditional stock exchanges. This setup targets institutions and retail investors who prefer regulated products over direct crypto ownership.
Additionally, Canary is planning to make this product available to more investors by getting it listed on well-known stock exchanges. Its approval should make it easier for people from the traditional market to take part. Additionally, as a result, this ETF could boost interest in cryptocurrency among financial markets and enhance its utility.
The firm has also filed proposals for ETFs based on other digital assets, including Litecoin, Hedera, Tron, Solana, SEI, and Pudgy Penguins. This shows Canary’s broader goal to link digital asset markets with traditional finance in regulated formats.
SEC Cites Market Risks as Cause for Delay
The SEC delayed its decision over concerns regarding market manipulation and lack of investor protection, according to its latest filing. These worries align with its long-standing cautious stance toward cryptocurrency-based financial instruments.
Although it approved some futures-based crypto ETFs, spot ETFs have faced more problems due to their direct ties to actual assets. The commission’s uncertainty stems from recent market abuse cases, including bot exploitation on large platforms like Binance.
Furthermore, SEC Chair Paul Atkins, known for a pro-market position, has not yet advanced any Spot ETF approvals since taking office. Consequently, the commission has requested additional time to thoroughly review the submission, thereby extending the final date from June 9 to July 24, 2025.
Related: Canary Funds Seeks Approval for SUI ETF Amid Crypto Shift.
Competition Grows Despite Regulatory Delays
While Canary awaits a verdict, competitors are entering the race. 21Shares filed a Form S-1 with the SEC for a SUI-based spot ETF, and later, Nasdaq submitted a Form 19b-4 to list the ETF. Its entry showcases the rising interest from established institutions in constricted crypto offerings. Hence, while the SEC remains cautious, companies proceed in the development of products to meet investor demand for secure and compliant crypto exposure.
