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

First Sui Exchange-Traded Fund Approved in the US Market

Swiss-based ETF issuer 21Shares has taken a significant step by introducing the first exchange-traded fund (ETF) that tracks the price of Sui to the US market. The 21Shares 2x SUI ETF has 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 return of the Sui token.

What is Sui and How Does It Work?

Sui is a decentralized cryptocurrency built on the Ethereum blockchain. Transactions are conducted peer-to-peer thanks to its proof-of-stake consensus mechanism. This greatly enhances transparency and diminishes the need for intermediaries. The native token of Sui is used for various purposes including transaction fees, network governance, and staking.

The Future of 21Shares and Sui

Previously, 21Shares filed a registration statement with the SEC for a spot Sui ETF in May 2025. Additionally, they aim to increase their influence in the sector by establishing "strategic partnerships" to create product collaborations and various research reports related to Sui. Leveraged ETFs are typically preferred as short-term investment tools for experienced investors due to the high risks associated with the use of 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 to hit the market and has earned the title of the 128th ETF overall. Balchunas shared on X that, "We expect 80 more ETFs in the next 12 months."

For investors, the market for such innovative products is continually expanding and is volatile in nature. While leveraged ETFs present various opportunities in terms of investment strategies, they are seen as instruments that require careful consideration.