Swiss-based asset manager 21Shares is taking a bold step forward in the altcoin investment space. The company recently launched a staking-enabled exchange-traded product (ETP) for SUI in Europe while filing with the U.S. Securities and Exchange Commission (SEC) for a spot SUI ETF. Coinbase Custody Trust Company has been named the official custodian for the proposed American fund.
These moves highlight a growing trend among institutional investors looking beyond Bitcoin and Ethereum, signaling the industry’s shift toward more diverse blockchain exposure.
The Dual Approach: Staking in Europe, Compliance in the U.S.
The European “ASUI” ETP, introduced in July 2024, allows investors to gain exposure to SUI while automatically earning staking rewards. In contrast, 21Shares’ newly filed U.S. ETF focuses solely on price performance without staking. This distinction likely reflects regulatory caution in the American market, where staking remains a complex topic under SEC scrutiny.
Key details include:
- Coinbase Custody will safeguard SUI tokens for the proposed U.S. ETF.
- The U.S. product will not participate in staking, keeping it compliant with current regulatory expectations.
- The European version continues to reward investors through staking income, offering an added yield advantage.
Industry observers believe the U.S. filing represents a more conservative approach, prioritizing regulatory approval over yield generation.
Market Response and Broader Implications
Following the announcement, SUI’s price saw a swift uptick—reports indicate an 8–11% rise within 24 hours. 21Shares’ collaboration with the Sui Foundation further strengthens the initiative, aligning product development with network growth.
By simultaneously expanding in Europe and the U.S., 21Shares demonstrates how crypto fund providers are evolving to meet varied investor preferences:
- The European staking ETP appeals to yield-seeking investors.
- The proposed U.S. ETF caters to those wanting straightforward exposure through regulated channels.
If approved, the SUI ETF could open new institutional gateways to emerging Layer-1 networks, joining the ranks of other non-Bitcoin, non-Ethereum funds. Still, the SEC’s decision remains uncertain, particularly given ongoing debates over staking within ETF structures.
For now, 21Shares’ twin strategy shows a forward-thinking approach—blending innovation with regulatory awareness as the crypto ETF landscape matures.
