Grayscale Investments has submitted an amended application to the U.S. Securities and Exchange Commission (SEC) for a spot Sui ETF, a significant step toward converting its existing trust into an exchange-traded fund. The updated filing includes a second amended and restated declaration of trust, participant agreements, and legal opinions, outlining the operational transition plan. The trust will be renamed the Grayscale Sui Staking ETF and will continue to trade under the ticker GSUI on the NYSE Arca.
Key operational roles have been assigned: The Bank of New York Mellon will act as transfer agent and administrator, while Coinbase has been designated as the trust's prime broker. Coinbase Custody Trust Company will serve as the custodian for the trust's assets. Notably, details on management fees, staking providers, and potential fee waivers remain undisclosed.
The announcement fueled immediate market optimism, with the SUI token price jumping over 7% to nearly $0.95. Trading volume surged nearly 45%, and SUI futures open interest increased by 5% to $524 million, with notable buying activity on exchanges like Binance, OKX, and Bybit.
Concurrently, liquidation data reveals a massive asymmetry in market positioning. Analysis by trader eye zen hour shows approximately $143.9 million in short positions would be liquidated if SUI price climbs toward $1.74, compared to only $25.7 million in long liquidations if the price drops to $0.72—a nearly 6:1 upside bias. On Binance specifically, $16.18 million in shorts sit up to $1.25.
Technically, SUI is testing the bottom of a multi-month channel with support around $0.962, aligning with a high-volume node. This compression at structural support, combined with the heavy short liquidation stack above, creates conditions ripe for a volatility expansion. Analyst CryptoPatel identifies $0.50 to $0.80 as a prime accumulation zone, projecting a potential rally toward $10-$20 if resistance near $1.00 is broken.
