Canary Capital Files Application for First-Ever Sui Cryptocurrency ETF

TLDR

• Canary Capital filed for a Sui ETF with the SEC on March 17, 2025, marking the firm’s sixth crypto ETF filing
• Sui is a layer-1 blockchain with a $7.4 billion market cap, currently ranked among the top 25 cryptocurrencies
• The filing comes amid optimism about crypto regulation under the Trump administration
• Sui recently partnered with World Liberty Financial, a crypto platform backed by President Trump
• The SEC is unlikely to approve new crypto ETFs until Paul Atkins is confirmed as SEC Chair

Canary Capital Group has filed an application with the Securities and Exchange Commission (SEC) to launch what would be the first exchange-traded fund (ETF) tied to the Sui cryptocurrency. The March 17 filing adds to a growing list of crypto ETF applications in the post-election regulatory environment.

Sui is the native token of the Sui Network, a layer-1 blockchain service provider. It currently has a market value of approximately $7.4 billion. This places it within the top 25 cryptocurrencies by market capitalization.

This marks Canary Capital’s sixth cryptocurrency ETF filing with the SEC. The firm has previously filed for ETFs tracking Solana, Litecoin, XRP, Hedera, and Axelar. Each filing represents a bet on the changing regulatory landscape for digital assets.

The application comes during a period of increased optimism in the crypto sector. The election of President Donald Trump has sparked hope for a more favorable regulatory environment. Trump has promised to relax regulatory enforcement against cryptocurrency businesses.

Canary Capital CEO Steven McClurg expressed his positive outlook on the changing situation. “There’s been a tremendous shift in the landscape and mood among cryptocurrency market participants since the election,” McClurg told Reuters. “I’m pretty optimistic that we’re on track to see many of these approved before the end of 2025.”

New Era for Crypto ETFs

McClurg also highlighted the growing importance of the Sui blockchain to The Block. “We have seen a massive move of developers into the SUI ecosystem,” he said. “Given the speed and efficiency of the SUI chain, we believe it will be a destination for many future projects.”

Sui itself has been making headlines in recent weeks. On March 6, the blockchain announced a partnership with World Liberty Financial, a decentralized finance project linked to President Trump. The partnership includes adding Sui to World Liberty’s “Macro Strategy” token reserve.

The Sui token has shown mixed price performance in recent months. While it is trading up 1.3% over the last day at approximately $2.31, it has fallen 56.5% from its January 5 all-time high of $5.35, according to data from CoinGecko.

Sui is a relatively new blockchain created by Mysten Labs, a company founded by former Meta employees. Despite being less than two years old, it has quickly gained traction in the cryptocurrency ecosystem.

Sui investment products already exist in other forms. Grayscale Investments launched the Grayscale Sui Trust in August 2024. This is a private investment vehicle offering Sui exposure to accredited investors only.

The proposed Canary Sui ETF would differ by trading on a public stock exchange. This would make it accessible to any investor, not just those meeting accreditation requirements. Canary had previously registered a trust in Delaware on March 6 for the fund.

To gain approval, Canary must also file a Form 19b-4 with the SEC before the agency can consider whether to list it for trading. The filing does not yet include information on which exchange the ETF would trade on or its proposed ticker symbol.

Industry observers note that the SEC is unlikely to approve new ETFs until Paul Atkins, Trump’s nominee for SEC chair, is confirmed. A Senate confirmation hearing for Atkins is reportedly scheduled for March 27, having been delayed due to issues with financial disclosures.

The crypto industry has already seen some regulatory relief under the new administration. Regulators have dropped enforcement actions against several large cryptocurrency companies and are considering scrapping rules proposed by the previous administration.

Since the approval of Bitcoin and Ethereum ETFs in 2024, issuers have filed for regulatory approval to list ETFs on at least 10 additional cryptocurrencies. The most popular new coins among issuers are Solana and XRP, each with six ETF applications pending with the SEC.