Nasdaq has submitted a 19b-4 filing with the US Securities and Exchange Commission (SEC) to list the 21Shares SUI ETF, a spot ETF backed by the SUI token from the Sui blockchain. This marks a significant advancement toward institutional adoption of SUI and the formal start of the regulatory review process.
The filing follows 21Shares' earlier registration in April and comes as SUI-based exchange-traded products (ETPs) have attracted over $300 million in inflows globally, primarily in European markets via Euronext Paris and Amsterdam. The introduction of this ETF on US markets could further stimulate regulated exposure and institutional interest in the Sui ecosystem.
Sui is notable for its unique technological features, including object-oriented programming and a horizontally scalable infrastructure that supports diverse use cases ranging from decentralized finance (DeFi) and gaming to real-world asset tokenization. The network currently ranks eighth in total value locked (TVL) with approximately $1.944 billion deployed across its platforms. The Sui ecosystem’s stablecoin market cap has surged to over $1.1 billion, with May transfers exceeding $110 billion.
Recently, the Sui network experienced disruption due to a $260 million hack on Cetus, a key decentralized exchange and liquidity protocol on Sui, resulting in temporary network freeze and community concerns. However, through a $10 million security overhaul and measures to improve shared accountability, the network has recovered, with TVL rebounding and the SUI token price rising around 18% since June 1st, trading near $3.47 at the time of reporting.
Industry leaders like Mysten Labs President Kevin Boon have praised this Nasdaq filing as a milestone that reflects growing institutional commitment. Bloomberg analyst Eric Balchunas anticipates this development could catalyze an "Altcoin ETF Summer," though he cautions that demand for altcoin ETFs may not reach Bitcoin ETF levels.
The SEC has delayed its decision on a Hedera ETF application, signaling a cautious regulatory environment but continued consideration of Layer-1 altcoin ETFs. Overall, the Nasdaq filing represents a pivotal moment for mainstreaming alternative Layer-1 blockchain ecosystems and could bolster institutional demand for SUI and related DeFi protocols.