SEC Approves First 2x Leveraged SUI ETF as Crypto Products Expand

Source: ETHNews Original Title: SEC Approves First 2x Leveraged SUI ETF as Crypto Products Expand Original Link: https://www.ethnews.com/sec-approves-first-2x-leveraged-sui-etf-as-crypto-products-expand/

How the Leveraged ETF Works

The SEC has approved the first-ever 2x leveraged SUI ETF, marking another significant step in the expansion of regulated crypto investment products in the United States.

Issued by 21Shares and trading under the ticker TXXS, the fund began trading on Nasdaq on December 4, 2025. Its launch offers investors amplified exposure to the daily performance of SUI, the native token of the Sui blockchain, through a fully regulated derivatives-based structure.

TXXS is designed to deliver twice the daily return of SUI, providing 200% exposure through a portfolio of derivatives rather than direct token ownership. This structure allows investors to access leveraged performance without navigating on-chain mechanics or holding crypto in custody.

While the fund opens new ways to trade SUI’s volatility, it also magnifies downside risk in equal measure, making it suitable only for short-term, sophisticated traders who understand the mechanics and compounding effects of leveraged vehicles. The ETF carries a management fee of 1.89%, consistent with other high-complexity leveraged products in the market.

A Sign of Growing Regulatory Comfort With Crypto ETFs

The approval of TXXS signals increasing regulatory willingness to allow more advanced and structured crypto products into the U.S. market. It follows 21Shares’ leveraged Dogecoin ETF (TXXD), approved in November 2025, and comes as the SEC reviews a separate application for a spot SUI ETF.

Together, these developments reflect a broader shift toward treating crypto assets within a familiar ETF framework, while still maintaining regulatory guardrails designed for investor protection.

A Broader Trend Toward Institutional-Grade Crypto Access

As the digital asset ecosystem matures, the rollout of leveraged ETFs represents another step in aligning crypto with traditional financial market infrastructure. Products like TXXS give traders access to volatility-driven strategies that were previously limited to crypto-native derivatives exchanges.

For institutions and active traders, this provides a compliant, exchange-traded instrument to express directional views on emerging blockchain ecosystems such as Sui.

The debut of TXXS ultimately highlights how the intersection of crypto and traditional finance continues to deepen, and how investor demand for diversified, regulated exposure is shaping the next wave of ETF innovation.