Regulatory Green Light: SEC Approves First-Ever 2x Leveraged SUI ETF as Grayscale Doubles Down with New Trust

The regulatory dam is cracking. In a landmark move, the SEC has approved the first-ever 2x leveraged ETF for SUI, a decision that throws open the doors for turbocharged institutional plays on the Layer 1 asset. This isn't just a nod—it's a full-throated endorsement of sophisticated crypto derivatives hitting the mainstream market.

Grayscale's Parallel Gambit

Not to be outdone, Grayscale—the firm that practically wrote the playbook on crypto trusts—has immediately filed paperwork for a new SUI-focused investment vehicle. The timing is no coincidence. It's a classic one-two punch: regulators provide the runway, and the industry's heaviest hitter rushes to build the terminal. They're betting big that institutional demand, now armed with leverage, will flood into the SUI ecosystem.

The Leverage Effect: A Double-Edged Sword

This 2x ETF changes the game. It allows traders to amplify their exposure, promising magnified gains (and, of course, equally magnified losses) based on SUI's daily performance. It's a tool for the bold, a product that finally lets traditional finance bros feel the same gut-churning volatility as a degen on a futures platform—just with better suits and more compliance paperwork.

A cynic might note that Wall Street only truly embraces an asset class once it's figured out how to slice, dice, and sell it back to you at a hefty premium. The approval isn't just about SUI's technology; it's about its potential as a profitable product line. The real innovation here isn't blockchain scalability—it's fee generation.

The floodgates are officially open. With regulatory approval and institutional infrastructure now converging, SUI is poised for a new chapter of volatility and validation. Buckle up.

The SEC has approved the first 2x Leveraged SUI ETF, TXXS, which is now live on Nasdaq through 21Shares US. The launch increases liquidity and visibility for Sui at a time when the network is seeing higher trading activity and was recently added to a Vanguard index. 

Over the past 24 hours, sui slipped 1.59% to $1.54, while trading volume fell 37% to $871 million, but investor interest in new SUI-based products continues to rise.

Grayscale Joins With New S-1 Filing

Just days after 21Shares’ launch, Grayscale submitted an S-1 filing for the Grayscale SUI Trust. The proposed fund will track the price of SUI minus fees and offer regulated exposure without requiring investors to manage wallets or custody. 

This aligns with Grayscale’s plan to expand its single-asset ETF range, focusing on tokens that are gaining traction in the next phase of blockchain adoption.

21Shares Leads With TXXS

21Shares’ leveraged ETF, TXXS, gives 2x daily exposure to sui price movements through derivatives. It saw more than 4,700 shares traded on its first day and closed at $24.57, becoming the first U.S.-listed ETF tied directly to Sui. 

As a leveraged product, it is designed for short-term, experienced traders, but the approval itself shows growing institutional confidence in Sui-linked offerings.

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Rising Demand for SUI Funds

The wave of new filings highlights growing demand for Sui exposure. Earlier this year, Canary Funds also applied for a spot SUI ETF, signalling interest from both institutional and retail investors. 

Grayscale’s proposed trust follows the structure of its existing single-asset products, giving investors a regulated way to track SUI’s price without interacting with the blockchain directly, making it one of the earliest U.S. products built specifically for the Sui ecosystem.

Why SUI?

Grayscale’s move follows other recent entries, including the first U.S. chainlink ETF, a Dogecoin ETF, and a new effort to convert its Zcash Trust into a spot ETF.

At the same time, Sui’s fundamentals are improving. Its DeFi ecosystem is growing with stronger liquidity across lending platforms, DEXs, and derivatives. The network is also gaining momentum in real-world asset tokenization, and BTC-backed assets now make up a noticeable share of its total value locked, showing stronger cross-chain activity.

Despite short-term price swings, SUI remains around $1.54. Although trading volume is down nearly 31%, analysts see the pullback as temporary, pointing to Sui’s rising TVL and increasing real-world asset activity as signs of long-term strength.

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