Grayscale Seeks SEC Approval for Its SUI ETF Amid Expanding Crypto ETF Competition

Grayscale expands its crypto ETF line as it files for approval of a new Sui focused investment product.

Competition rises in the Sui ETF market as multiple firms seek investor demand through regulated offerings.

New filings show growing interest in token based exposure as asset managers broaden their crypto strategies.

Grayscale has filed new paperwork with U.S. regulators to launch the Grayscale Sui Trust. The filing arrives shortly after 21Shares introduced the first Sui-based ETF on Nasdaq

Grayscale submitted an S-1 registration statement to the SEC as it seeks approval for the proposed product. The trust aims to provide direct exposure to the Sui ecosystem through a regulated security.

Competition Builds Around SUI-Focused Products

The proposed ETF will track the market performance of SUI minus fees and expenses. It offers investors access to the asset without requiring direct custody or blockchain management. The move expands Grayscale’s growing lineup of single-asset offerings introduced throughout the year. The filing also highlights rising competition among asset managers seeking to capture demand for Sui-linked products.

Interest in SUI ETFs increased after 21Shares launched a leveraged SUI product on Nasdaq. The ETF trades under the ticker TXXS. It offers 2x daily exposure to SUI through derivatives rather than direct token holdings. The fund targets short-term speculative trading and reported an opening day close of $24.57. It recorded more than 4,700 shares traded and became the first U.S.-listed ETF tied to the Sui blockchain.

Growing Industry Push Toward SUI Exposure

Other firms have also moved to enter the SUI market. Canary Funds advanced its own spot SUI proposal earlier this year. The application reached the SEC review stage in July. These developments reflect increasing interest from asset managers seeking to meet investor demand for exposure to the network.

The Grayscale Sui Trust follows the structure of the company’s existing single-asset products. It offers a regulated alternative for investors who want SUI exposure without handling storage or private keys. The fund’s shares aim to mirror the asset’s price performance as closely as possible. The new filing adds to a wave of ETF activity from the firm in recent weeks.

Broader Strategy Behind Grayscale’s ETF Expansion

Grayscale recently launched the first U.S. Chainlink ETF on NYSE Arca. The company has also expanded into products linked to Dogecoin. Its DOGE ETF began trading on the NYSE on November 24. In addition, the firm submitted an S-3 to convert its existing Zcash Trust into a spot Zcash ETF

These efforts point to a broader strategy to widen regulated access to tokens that may support emerging tokenization trends. The new SUI filing positions Grayscale to compete in a developing segment of the crypto ETF market.