SEC Approves First 2x Leveraged SUI ETF as Grayscale Files for Sui Trust, Highlighting Institutional Adoption

The U.S. Securities and Exchange Commission (SEC) has approved the first 2x leveraged exchange-traded fund (ETF) tied to the Sui (SUI) token. The ETF, named TXXS, is now live on Nasdaq and is managed by 21Shares US. This launch significantly increases the liquidity and visibility for the Sui network, coinciding with a period of heightened trading activity and its recent inclusion in a Vanguard index.

Grayscale followed this development by submitting an S-1 filing for the Grayscale Sui Trust. This proposed fund is designed to track the price of SUI, minus fees, offering investors regulated exposure without the need to manage wallets or custody assets directly. This move aligns with Grayscale's broader strategy to expand its suite of single-asset ETF products, focusing on tokens gaining traction in the next wave of blockchain adoption.

The 21Shares leveraged ETF, TXXS, provides 2x daily exposure to SUI's price movements through derivatives. On its first trading day, it saw over 4,700 shares traded, closing at $24.57. As a leveraged product, it is targeted at experienced, short-term traders, but its approval is seen as a strong signal of growing institutional confidence in SUI-linked financial products.

This wave of new filings underscores rising demand for regulated SUI exposure. Earlier this year, Canary Funds also applied for a spot SUI ETF, indicating interest from both institutional and retail investors. Grayscale's proposed trust follows the structure of its existing single-asset products, providing one of the earliest U.S.-regulated investment vehicles built specifically for the Sui ecosystem.

Concurrently, analysis highlights Sui's strong fundamental performance. The network has been processing between 5,000 and 8,000 transactions per second (TPS) in production with 99.99% uptime, performance metrics that rival Solana (SOL). Despite this, SUI's market capitalization remains a fraction of Solana's, trading at roughly 0.3x SOL's market cap at a price of around $1.54. This valuation gap is attributed to market narratives still anchored to EVM compatibility, while Sui's architecture, built for parallel execution, allows it to scale without the limitations of sequential processing.

Sui's fundamentals are strengthening, with a growing DeFi ecosystem featuring improved liquidity across lending platforms, decentralized exchanges (DEXs), and derivatives. The network is also gaining momentum in real-world asset (RWA) tokenization, and Bitcoin-backed assets now constitute a notable share of its total value locked (TVL), indicating robust cross-chain activity. Despite a recent 1.59% price slip to $1.54 and a 37% drop in 24-hour trading volume to $871 million, analysts view the pullback as temporary, pointing to Sui's rising TVL and RWA activity as signs of long-term strength.