Grayscale Investments has launched a staking exchange-traded fund (ETF) for the Sui (SUI) blockchain's native token, marking a significant institutional move into the asset. The Grayscale Staking SUI ETF (GSUI) began trading on February 18, 2026, aiming to provide investors with exposure to SUI while allowing them to earn staking rewards by participating in network validation.
This launch occurs against a backdrop of significant market challenges for SUI. The altcoin has been one of the worst-performing assets of 2026, declining 31% year-to-date after extending 2023's 57% losses. It has erased all its post-election gains from a peak of $5.35. Technical analysis reveals a bearish divergence in the Relative Strength Index (RSI) between February 6 and 16, signaling fading momentum during a price recovery, despite a positive Chaikin Money Flow (CMF) reading of 0.03 indicating some institutional accumulation.
The Sui ecosystem itself shows strong fundamental growth, contrasting with the token's price action. Developer activity has been robust, with approximately 5,500 code commits over the past 90 days—the highest among all Layer 1 blockchains. The network has also secured key integrations, including a security partnership with Certora, a cross-chain connectivity expansion via Wanchain, and the launch of Ethena Labs' suiUSDe stablecoin directly on the Sui mainnet. Furthermore, Coinbase has added token standard support for SUI.
However, the network faces immediate headwinds. Total Value Locked (TVL) has slipped back to pre-election levels around $580 million. More pressingly, a token unlock of 43.35 million SUI is scheduled for March 1, 2026, which analysts warn could spark further volatility and selling pressure. Open Interest in SUI futures has also dropped nearly 30%, indicating traders are pulling back from leveraged positions.
Analysts highlight a critical technical juncture for SUI's price. The token is trading around $0.9878 within a falling broadening wedge pattern. A clean break above the $1.05 resistance level is needed to confirm a bullish reversal and neutralize the RSI warning. Failure to do so keeps a 20% downside risk alive, with a potential correction target near the $0.75 Fibonacci support level. A break below $0.57 would signal a decisively bearish turn for the pattern.
