Canary Capital Launches SUI ETF Initiative with Delaware Registration

Canary Capital, a prominent asset management company, has filed for a statutory trust aiming to create a Sui (SUI) exchange-traded fund (ETF) in Delaware.

The application was sent to the Delaware Division of Corporations on March 6, setting the stage for the rollout of the SUI ETF.

First Steps Toward a SUI ETF

This registration marks the initial phase prior to the submission of an S-1 form to the US Securities and Exchange Commission (SEC). Moreover, Canary Capital must also file a 19b-4 with the SEC affiliated with the exchange that will list the ETF.

Canary Capital is pioneering the journey toward a SUI ETF, but its efforts are not limited to this cryptocurrency. Recently, the firm also filed an S-1 registration for an Axelar (AXL) ETF and is actively exploring funding avenues for other digital assets like Litecoin (LTC), XRP (XRP), Solana (SOL), and Hedera (HBAR).

In the backdrop of this development, a Sui Network ambassador explains the prospective impacts a SUI ETF could have, drawing parallels to the successes seen with Bitcoin (BTC) and Ethereum (ETH) ETFs. They noted that a SUI ETF could yield similar advantages.

“Even a slice of the interest that BTC/ETH ETFs attracted could substantially enhance Sui Network’s liquidity and market cap,” reads a recent post.

This ambassador elaborated that the SUI ETF has the potential to invigorate liquidity by presenting a fresh trading platform for both crypto and traditional investors. Furthermore, by incorporating actual SUI tokens, the ETF could effectively reduce the circulating supply which might lead to an uptick in price.

The anticipated rise in liquidity and price could foster growth within the ecosystem, making it increasingly appealing to developers and institutional investors eager to leverage this ascending trend.

“Bitcoin and Ethereum are now ‘established’. A newer network like Sui entails higher risks but could potentially yield higher rewards, similar to investing in an emerging tech stock,” he commented.

However, the ambassador cautioned that institutional investors might proceed with caution regarding a SUI ETF, citing potential volatility, liquidity challenges, and regulatory ambiguities as significant concerns.

He noted that obtaining regulatory approval could pose difficulties as the SEC has been vigilant about classifying numerous altcoins as potential securities. Thus, SUI might face similar scrutiny, necessitating market oversight and clarification regarding its status. Nonetheless, he optimistically acknowledged that these regulatory processes could become more efficient under the current administration.

Interestingly, this filing aligns closely with the recent announcement from World Liberty Financial, which formed a partnership with the Sui blockchain to focus on product development, incorporating SUI into its strategy reserve.