The Securities and Exchange Commission (SEC) has approved the first 2x leveraged SUI ETF, named TXXS, which is now available on Nasdaq through 21Shares US. This launch is expected to enhance liquidity and visibility for the Sui network at a time when it is experiencing increased trading activity and was recently included in a Vanguard index.
In the past 24 hours, SUI saw a slight decrease of 1.59%, trading at $1.54, with trading volume falling by 37% to $871 million. Despite these short-term movements, investor interest in new SUI-based investment products continues to grow.
Grayscale Joins With New S-1 Filing
Just days after the launch of 21Shares' product, Grayscale submitted an S-1 filing for the Grayscale Sui Trust. This proposed fund aims to track the price of SUI, less any associated fees, and will provide regulated exposure to the asset without requiring investors to manage cryptocurrency wallets or custody their holdings.
This filing aligns with Grayscale's strategic plan to expand its range of single-asset Exchange Traded Funds (ETFs), focusing on digital assets that are demonstrating significant traction in the ongoing evolution of blockchain adoption.
21Shares Leads With TXXS ETF
21Shares' new leveraged ETF, TXXS, offers investors 2x daily exposure to SUI's price movements through the use of derivatives. The ETF recorded over 4,700 shares traded on its inaugural day and closed at $24.57, marking it as the first U.S.-listed ETF directly tied to the Sui blockchain.
As a leveraged product, TXXS is specifically designed for experienced traders and short-term investment strategies. However, its approval signifies growing institutional confidence in investment offerings linked to Sui.
Rising Demand for SUI Funds
The recent wave of new filings underscores a growing demand for investment vehicles providing exposure to Sui. Earlier this year, Canary Funds also submitted an application for a spot SUI ETF, indicating significant interest from both institutional and retail investors.
Grayscale's proposed trust mirrors the structure of its existing single-asset products. This structure allows investors to track SUI's price through a regulated channel, without the need to directly interact with the blockchain, positioning it as one of the early U.S. products developed specifically for the Sui ecosystem.
Why SUI?
Grayscale's strategic move follows a trend of increased institutional interest in digital asset-focused funds. This includes recent developments such as the first U.S. Chainlink ETF, a Dogecoin ETF, and an ongoing initiative to convert Grayscale's Zcash Trust into a spot ETF.
Concurrently, Sui's underlying fundamentals are showing positive development. Its decentralized finance (DeFi) ecosystem is expanding, marked by increased liquidity across lending platforms, decentralized exchanges (DEXs), and derivatives markets. The network is also gaining momentum in the tokenization of real-world assets, with Bitcoin-backed assets now representing a notable portion of its total value locked, demonstrating enhanced cross-chain interoperability.
Despite short-term price fluctuations, SUI is currently trading around the $1.54 mark. Although trading volume has seen a reduction of nearly 31%, analysts view this pullback as a temporary market adjustment. They point to Sui's rising total value locked (TVL) and increasing activity in real-world asset tokenization as indicators of its long-term strength and potential.
FAQs
TXXS is a leveraged ETF that provides 2x daily exposure to SUI's price movements. It is designed for short-term traders seeking amplified market returns.
Grayscale filed to offer regulated exposure to SUI without the complexities of managing wallets or custody, providing investors with a more straightforward method to track the asset's price.
Demand is increasing as the Sui ecosystem expands, evidenced by rising total value locked (TVL), robust DeFi activity, and the introduction of more SUI-focused investment products by institutions.
Yes. Even with short-term price declines, analysts highlight Sui's growing DeFi utilization and real-world asset activity as strong indicators of its long-term resilience and potential.