Quick Breakdown
- SEC launches proceedings on Nasdaq’s plan to list 21Shares SUI ETF.
- ETF aims to track SUI token performance via CME CF benchmark.
- Review focuses on market integrity, fraud prevention, and investor protection.
The U.S. Securities and Exchange Commission (SEC) has formally instituted proceedings to determine whether to approve or disapprove Nasdaq’s proposal to list and trade shares of the 21Shares SUI ETF, a trust designed to track the price of the Sui blockchain’s native token.
The move follows Nasdaq’s May 23 filing under Rule 5711(d), which governs commodity-based trust shares. If approved, the fund would allow investors to gain exposure to SUI through traditional equity markets, mirroring the growing trend of regulated crypto investment products.

ETF Structure and Benchmarking
According to the filing, the 21Shares SUI ETF will hold SUI directly and track the performance of the digital asset through the CME CF SUI–Dollar Reference Rate (New York Variant), calculated daily at 4:00 p.m. ET by CF Benchmarks Ltd. Shares of the trust will be issued and redeemed in blocks of 10,000, with transactions settled in cash through authorized participants.
21Shares US LLC is named as the sponsor, with CSC Delaware Trust Company as trustee. Custody of the underlying SUI will be handled by BitGo New York Trust Company and Coinbase Custody Trust Company.
SEC’s Concerns and Call for Comments
The SEC, however, said further analysis is required to assess whether the proposed rule change complies with Section 6(b)(5) of the Securities Exchange Act, which mandates safeguards against fraud and manipulation and prioritizes investor protection.
The Commission specifically invited public comments on whether listing the SUI ETF raises novel risks, particularly regarding market integrity and price reliability. The comment period will remain open for 21 days after publication in the Federal Register, with rebuttal comments accepted up to 35 days after publication.
The decision deadline is September 8, 2025, marking the date by which the SEC must approve, disapprove, or continue its proceedings on Nasdaq’s proposal. A ruling could set another precedent for integrating digital asset ETFs into U.S. markets. Meanwhile, trading firm and market maker Wintermute has urged the SEC to clarify that network tokens such as Bitcoin (BTC) and Ether (ETH) should not be treated as securities.
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