Key Takeaways:
- Bitwise has filed to launch a spot SUI ETF, designed to track SUI’s price directly using a CME CF benchmark.
- The ETF plans to stake SUI holdings, aiming to generate additional yield beyond price exposure.
- Coinbase Custody will safeguard assets, while in-kind creations and redemptions align the product with institutional ETF standards.
Bitwise Asset Management has formally moved to expand the U.S. crypto ETF landscape by filing for a spot SUI exchange-traded fund. The proposal signals growing institutional interest in SUI, a fast-rising Layer 1 blockchain token, as ETF issuers push beyond Bitcoin and Ethereum.
Read More: Bitwise’s Hyperliquid ETF Nears Launch With 0.67% Fee and Built-In Staking Yield Boost
Bitwise Pushes SUI Into the Spot ETF Race
The proposed Bitwise SUI ETF is structured as an exchange-traded product that holds SUI directly rather than relying on derivatives. Its goal is simple: reflect the market value of SUI held by the trust, minus operating costs and liabilities.
Net asset value will be calculated daily using the CME CF Sui–Dollar Reference Rate (New York variant), a benchmark built from executed trades across major SUI trading platforms. This approach mirrors pricing standards already used in approved Bitcoin and Ethereum ETFs, reinforcing institutional familiarity.
Bitwise Investment Advisers will sponsor and manage the trust. While details such as the ticker symbol and exchange listing remain undisclosed, the filing confirms that shares will be created and redeemed in large blocks, or “baskets,” through authorized participants.
ETF Structure Mirrors Institutional Crypto Standards
The trust will issue or redeem shares of baskets of 10,000 shares, and in-kind transfers of SUI or cash transfers. This framework assists in maintaining trading prices in line with the net asset value, but still in volatile market situations, premiums and discounts may still arise.
The SUI custodian has been selected to be Coinbase Custody, which will keep assets in segregated accounts. The majority of the assets shall be kept in cold storage with layered security measures, which will already be practiced by the U.S. regulators in other spot crypto ETFs.
How Pricing and Liquidity Work
- NAV is calculated daily at 4:00 p.m. ET using the CME CF benchmark
- An indicative trust value updates every 15 seconds during trading hours
- Authorized participants manage creations and redemptions, not retail investors
This arrangement enables the investors to be exposed to SUI by way of conventional brokerage accounts without the need to own or control tokens.
Staking Adds a Yield Layer to the ETF
A Key Differentiator for the Bitwise SUI ETF
The Bitwise proposal also incorporates staking as a second goal as opposed to many spot crypto ETFs. The trust plans to pledge a significant part of its hold in SUI with the help of the chosen validators, getting extra SUI rewards in the long run.
These staking rewards would elevate the net assets of the trust and this may add returns to the shareholders. Nevertheless, there are also certain risks, arising due to staking, such as the underperformance of validators and the liquidity limitations that can appear during lock-up periods.
Bitwise says that staking decisions will not be discretionary or dependent on the time of the market to prevent the impression of trading or running business. The trust will reveal the daily percentage of the assets staked which will add to the transparency of the investors.
Read More: Bitwise XRP ETF Sets Official NYSE Trading Launch Dates, Marking Major Milestone for XRP Access
Source: https://www.cryptoninjas.net/news/bitwise-files-spot-sui-etf-with-sec-offering-direct-exposure-and-staking-yield-to-tap-a-5b-token-market/
