Bitwise’s S-1 filing for Spot SUI ETF causes Sui price to rebound

The SUI price has rebounded from a nearly two-week downward trend as crypto asset management company Bitwise filed to launch an exchange-traded fund to track the Sui token.

summary

Bitwise had filed a Form S-1 with the SEC to launch a spot ETF tracking the SUI token.
Following the announcement, SUI rebounded more than 4.5% from its monthly low.

Bitwise on Thursday filed a Form S-1 with the U.S. Securities and Exchange Commission for the Bitwise Sui ETF, a product designed to track the spot market price of the SUI token, which serves as the native asset of the Layer 1 Sui blockchain network.

An S-1 filing with the SEC is the first formal step to begin the ETF approval process. Following submission, the Commission is expected to issue comments based on its initial review, typically within 30 days.

If the Commission then submits feedback or amendment requests, Bitwise will be required to file one or more amendment applications until the SEC deems the application valid, after which the ETF will be able to begin trading on the registered exchange.

You may also like: US Senate approves cryptocurrency advocate Michael Selig as 15th CFTC Chairman

Under the new generic drug listing standards framework approved in September, the entire review process is expected to take at least 75 days. The changes were introduced as part of the SEC’s crypto policy push under Chairman Paul Atkins, who launched the “Project Crypto” initiative earlier this year.

Under the previous framework, the ETF approval process could take up to 240 days or more because separate 19b-4 approvals were required. This requirement no longer applies to products that meet the general criteria.

The current regulatory environment has resulted in a number of spot altcoin ETFs flooding the market alongside existing products for Bitcoin and Ethereum. The Spot SUI ETF has not yet been approved, but at least three other issuers (Canary Capital, 21Shares, and Grayscale) have applied to list.

A final decision on 21Shares’ application is expected to be made by December 21st, potentially making the company the first U.S. spot ETF product to directly track the SUI token.

However, the SEC has already given the green light to leveraged SUI ETFs earlier this month, approving the 21Shares 2x Long SUI ETF, which was launched on the Nasdaq in early December. This product offers twice the daily performance of SUI, but does not hold the underlying tokens directly.

Meanwhile, Bitwise recently added SUI to its 10 Crypto Index ETF, which currently trades on the New York Stock Exchange.

SUI prices, which had been on a downward trend since early December, rebounded from monthly lows of around $1.33 late Thursday after news of the filing broke. At the time of writing, it had risen more than 4.5% from that level.