Big News: Bitwise Joins the Race for a Spot Bitwise SUI ETF
The ETF wave is expanding beyond Bitcoin and Ethereum. Major crypto asset manager Bitwise has officially filed a Form S-1 with the SEC for a spot exchange-traded fund tied to SUI, the native token of the Sui blockchain. This Bitwise SUI ETF filing makes the firm the fourth contender in this new altcoin ETF race, following applications from Grayscale, 21Shares, and Canary Capital.
Why This SUI ETF Filing is a Big Deal
This move is significant for several reasons. First, it provides a clear signal of institutional demand for exposure to layer-1 blockchains beyond the top two. SUI would become the sixth crypto asset with a spot ETF from Bitwise, joining BTC, ETH, SOL, XRP, and DOGE.
Furthermore, the filing reveals key innovative features. Bitwise plans to offer staking for the ETF, allowing the fund to generate yield by participating in Sui network security. The filing also specifies “in-kind” creation and redemption, meaning the fund will directly handle SUI tokens rather than using cash, which is often seen as a more efficient and crypto-native structure. Coinbase is named as the custodian.
Market Context and Price Reaction
Notably, this filing comes shortly after the SEC approved a 2x leveraged SUI ETF from 21Shares. The race is on to launch the first spot product. Despite this bullish institutional news, the SUI price showed little immediate reaction, trading around $1.40 and remaining down over 12% on the week. This disconnect highlights how ETF approvals are now a process, and the market is waiting for final regulatory green lights before repricing.
My Take
This is a strategic and aggressive move by Bitwise. Filing for a Bitwise SUI ETF with a staking feature shows they’re not just following trends but aiming to offer a superior product. It validates Sui’s positioning within the institutional landscape. While the approval timeline is uncertain, the sheer number of filings creates pressure on the SEC and builds a powerful narrative for altcoin legitimacy. For investors, this is a long-term bullish signal for the entire layer-1 sector.
