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21Shares Proposes ETF to U.S. Securities and Exchange Commission, Causing Sui's Value to Decrease by 9%

In contrast to European versions, the 21Shares ETF in the U.S. does not provide staking rewards.

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A Peek into the Future: The 21Shares SUI ETF U.S. Launch

The Lowdown

  • Swiss crypto asset manager 21Shares has filed for an SUI ETF in the U.S., as per SEC filings.
  • The ETF aims to provide investors access to the native token of Sui, a layer-1 network known for its high-speed transactions.
  • Coinbase has been named as the custodian for the fund, but the exchange it will trade on and its ticker symbol remains unspecified.
  • In a strategic partnership with Sui, 21Shares will collaborate on products and research reports.
  • SUI's price jumped 9% to $3.69 following the announcement.

The Scene

21Shares Proposes ETF to U.S. Securities and Exchange Commission, Causing Sui's Value to Decrease by 9%

Wednesday saw crypto asset manager 21Shares apply for an exchange-traded fund (ETF) focused on the SUI token. The news was announced via a filing with the U.S. Securities and Exchange Commission (SEC). This move comes as part of 21Shares' broader strategy to expand in the U.S. market, following their initial European SUI-related ETP launch.

The proposed 21Shares SUI ETF seeks to provide direct exposure to the SUI tokens by holding them in custody without engaging in speculative trading, futures, or derivatives. The funds will be safeguarded using Coinbase as the custodian, as per the registration statement.

Simultaneously, 21Shares and Sui announced a strategic partnership, emphasizing product collaborations and research reports. "We've long been intrigued by Sui's potential to be one of the standout blockchains in the industry," said 21Shares President Duncan Moir.

The SUI Price Swing

The burst of excitement surrounding the ETF application led to an immediate price surge for SUI tokens on Wednesday. The token jumped 9.3% to $3.73 within the day, according to CoinGecko data. While SUI's price has seen a 80% rise over the last two weeks, it remains below its January peak of $5.35.

The Road Ahead

The ETF's commencement of trading depends on SEC approval, which involves both the Form S-1 registration and a separate Form 19b-4 filing for listing on a U.S. exchange. There's no set timeline for the SEC's decision, but they are currently examining various crypto ETF applications.

Extra Insights

  • Partnership and Structure: The ETF filing is in line with 21Shares' partnership with Sui, aiming to offer global access to the Sui network. The ETF tracks the CF Sui-Dollar Reference Rate Index and utilizes Coinbase as the custodian.
  • Market Expectation: The Sui blockchain's advantages like parallel transaction processing and scalability make it appealing to institutional investors.
  • Market Positioning: The ETF does not yet have a designated ticker or exchange for trading.
  1. Following the filing of the SUI ETF by 21Shares, the focus shifts to cryptocurrency, specifically the SUI token, as a promising investment opportunity in the market.
  2. With Coinbase as the custodian, the 21Shares SUI ETF is set to provide investors direct access to the native token of the layer-1 network, Sui, known for its high-speed transactions.
  3. In addition to the ETF, 21Shares and Sui announced a strategic partnership, aiming to collaborate on various products and research reports, showcasing a strong commitment to the crypto industry.
  4. As the partnership with Sui progresses, 21Shares hopes to position itself as a leader in investing and researching cryptocurrency, particularly Bitcoin [BTC] and Ethereum [ETH], as well as other emerging tokens.
  5. The announcement of the SUI ETF and the partnership with Sui has sparked renewed interest in the crypto industry, with experts predicting possible growth for cryptocurrencies and other blockchain-based technologies such as ETFs [Exchange-Traded Funds] and Staking.
  6. Research has shown that the Sui ETF could attract institutional investors, which would potentially lead to increased liquidity for SUI tokens.
  7. As the SEC reviews the Form S-1 registration and Form 19b-4 filing for the SUI ETF, 21Shares is also exploring other investment avenues, including Initial Coin Offerings (ICOs) and Decentralized Finance (DeFi) platforms.
  8. As the SUI ETF awaits SEC approval, interested investors can track the token's price movement on popular platforms like Coingecko, which currently lists SUI as one of the top cryptocurrencies to watch in the market.
  9. Moreover, with the launch of the SUI ETF, 21Shares plans to expand its product portfolio, leveraging technology and finance to drive innovation in the crypto space and contribute to its global growth.
U.S.-based 21Shares' Sui ETF does not provide staking incentives, unlike its European counterpart.

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