The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the 21Shares SUI ETF proposal, placing the approval process on indefinite hold as of July 2025. The delay is attributed to ongoing work on NASDAQ rule filings (specifically SR-CboeBZX-2025-053) and reflects the regulator's cautious approach toward altcoin-based exchange-traded funds.
21Shares, a subsidiary of 21co Holdings Limited led by CEO Hany Rashwan and Ophelia Snyder, submitted the proposal for an ETF tracking SUI, the native token of the Sui blockchain. The SEC has opened public comments until August 15, 2025, with rebuttal comments accepted until August 29, 2025, indicating thorough regulatory scrutiny. No official statements have been released by 21Shares or SEC leadership regarding the delay.
This decision mirrors historical patterns where the SEC has shown stringent review standards for altcoin ETFs, similar to previous delays with Solana and Litecoin products. The immediate effect includes delayed institutional access to SUI through traditional markets, potentially influencing investor sentiment and SUI's market performance. While no immediate financial shifts were reported, institutional investors remain cautious, adopting a "wait-and-see" approach.
The broader implications signal heightened regulatory scrutiny for altcoin ETFs, contrasting with earlier swift approvals for Bitcoin and Ethereum products. This delay may set precedents affecting future altcoin ETF applications, creating market uncertainty and reinforcing the SEC's cautious stance on crypto-based financial products.