- 21Shares has filed with the SEC to launch the first U.S.-based ETF offering regulated exposure to Sui’s native token, SUI.
- The ETF will enable institutional investors to gain exposure to SUI in a traditional brokerage account without directly holding the token.
- Coinbase Custody will store the ETF’s assets in air-gapped cold storage and multi-layered authentication for extra security.
21Shares has applied to the United States Securities and Exchange Commission (SEC) to list a new exchange-traded fund (ETF) providing institutional investors with exposure to the native token of Sui, SUI. The ETF is structured to provide indirect access to SUI via traditional brokerage accounts, without requiring holders to manage private keys or on-chain wallets. According to the Sui on X, this move marks the first step in integrating Sui into mainstream financial markets.
The product is designed to track SUI’s price performance using the CME CF Sui-Dollar Reference Rate (New York Variant) as its benchmark. This index calculates real-time market data from multiple SUI spot exchanges, delivering a volume-weighted, manipulation-resistant price reference. Launch timing is dependent on the SEC’s approval of both the S-1 and 19b-4 forms, with further announcements anticipated in the coming months.
Security and Custody Measures for the SUI ETF
To safeguard assets held within the fund, 21Shares has selected Coinbase Custody Trust Company as the official custodian of the ETF’s SUI holdings. As reported by 21Shares, Coinbase will use a cold storage solution with encrypted private keys and air-gapped infrastructure. These controls are reinforced by multi-signature protocols and SOC 1 and SOC 2 Type 2 audit compliance.
Each transaction will be routed through whitelisted addresses requiring multi-factor authentication and administrator approval. The SUI tokens will be isolated in dedicated cold wallets, offering additional protection in the event of third-party insolvency or cyber threats. This security framework reflects growing demand among institutions for credible, insured crypto custody.
Strategic Implications of the SUI ETF Launch
The ETF supports 21Shares’ broader goal of accelerating institutional adoption of blockchain assets through regulated financial instruments. Sui’s high-throughput architecture and object-centric model enable parallel transaction execution, which is crucial for scalable DeFi applications. The network’s infrastructure is tailored to both consumer and enterprise-grade use cases.
As detailed in the report by 21Shares, the ETF offers TradFi investors a pathway to participate in SUI price action without interacting directly with the blockchain. This product expands on 21Shares’ growing U.S. presence and builds on its experience with ETPs across Europe. If approved, the SUI ETF could mark a milestone in bridging decentralized assets with regulated capital markets.
