Approval for America's First Sui Exchange-Traded Fund has been granted.

First Sui Exchange-Traded Fund Approved in the US Market

Swiss-based ETF issuer 21Shares has taken a significant step by launching the first exchange-traded fund (ETF) tracking the price of Sui in the US market. The 21Shares 2x SUI ETF has successfully received approval to be traded on the Nasdaq stock exchange. This ETF stands out as a leveraged product designed to offer 200% of the daily returns of the Sui token.

What is Sui and How Does It Work?

Sui is a decentralized cryptocurrency built on the Ethereum blockchain. Its proof-of-stake consensus mechanism facilitates peer-to-peer transactions. This greatly enhances transparency, largely eliminating the need for intermediaries. Sui's native token is used for various purposes, including transaction fees, network governance, and staking.

21Shares and the Future of Sui

21Shares previously filed a registration statement with the SEC for a spot Sui ETF in May 2025. Additionally, they aim to increase their influence in the industry by establishing "strategic partnerships" to prepare product collaborations and various research reports with Sui. Leveraged ETFs are generally preferred by experienced investors as short-term investment vehicles due to their incorporation of high-risk derivatives.

Market Expectations and the Future of Crypto ETFs

Bloomberg's senior ETF analyst Eric Balchunas noted that it is quite rare for the first crypto-based ETF to be a leveraged product. The TXXS, launched in 2025, is the 74th crypto ETF in total, achieving the title of the 128th ETF overall. In a post on X, Balchunas expressed, "We expect 80 more ETFs in the next 12 months."

For investors, the market for such innovative products is continuously expanding and variable. While leveraged ETFs offer various opportunities in investment strategies, they are seen as instruments that should be carefully evaluated.