Bitwise Files for SUI ETF, Expanding Push for Regulated Crypto Exposure

Bitwise submits SUI ETF filing to SEC, seeking regulated token exposure as crypto ETFs gain traction among institutional investors.

Bitwise Asset Management has taken another step toward expanding regulated crypto access. On Thursday, the firm complied for a spot SUI exchange-traded fund. The move is driven by mounting institutional interest in exposure to diversified digital assets. Moreover, it emphasizes sustained interaction with U.S. regulators with changing crypto policy.

Bitwise Seeks Direct Exposure to SUI Through SEC Filing

According to the filing, Bitwise had submitted a Form S-1 registration statement to the Securities and Exchange Commission. The proposed product is called the Bitwise SUI ETF. Importantly it aims to monitor the price of SUI tokens owned by the trust. Expenses and liabilities would be deducted from the returns.

Furthermore, the filing notes the objective of the trust is to deliver expose with out direct management of tokens. This structure is similar to other spot crypto ETFs that have already been approved. As a result, traditional brokerage accounts allowed investors to get some exposure to SUI. This way, custody and operation complexity is less for institutions.

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The Bitwise SUI ETF takes the form of a Delaware statutory trust. It would be both physically backing by SUI tokens, rather than some sort of derivatives. Coinbase Custody trust company, LLC is listed as custodian However, none of the ticker symbol and sponsor fee is disclosed.

Net asset value calculations would be based on the CME CF Sui-Dollar Reference Rate. In particular, the New York Variant would be used. Shares would be sold and bought in large blocks. Each unit of the creation would contain 10,000 shares, according to the prospectus.

Both physical and cash transactions may be allowed. This flexibility is in line with pre-existing spot Bitcoin and Ether ETFs. But, final mechanics are still subject to regulatory review. The filing is the initial step, and the formal step only.

As of filing time SUI was trading around $1.40. The token lost about 5.09% in twenty four hours. Its market capitalization was close to $5.23 billion. Circulating supply shipment totaled around 3.74 billion tokens.

Regulatory Process Highlights Broader Crypto ETF Momentum

The S-1 filing does not, however, guarantee approval. Bitwise will have to submit Form 19b-4 as well. That document requests rule changes permitting exchange listing. The SEC will have to approve both filings before trading begins.

Historically, this review process can take several months. Market conditions and regulatory priorities exert influence on timelines. Still, recent approvals have been positive for asset managers. The process of approving Bitcoin spot ETFs was mutually completed in January 2024. Ether products were to follow later that year.

Since then, increased asset coverage has been a focus of firms. There has been the emergence of Solana, XRP, and multi-asset filings. Therefore, the SUI filing is in line with a broader industry trend. Managers seek to capture demand other than legacy tokens.

Sui is a Layer 1 blockchain being developed by Mysten Labs. It focuses on the scalability factor and low-latency transaction processing. The network is based on Move, a programming language. It has a maximum supply of tokens that is capped at 10 billion.

Institutional interest of alternative Layer 1 assets has increased. Analysts point to diversification and early stage growth potential. However, volatility is an important risk factor. The ETF structure aims at circumventing operational risks, not market swings.

In the end, SEC feedback will determine progress. Approval would make regulated exposure options even more extensive. Rejection may put a damper on developed altcoin ETFs Either of these outcomes will determine future filings.

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