Sui Explodes: 21Shares Launches First U.S. Leveraged ETF as Network Activity Skyrockets

Wall Street just placed a massive, leveraged bet on a Layer-1 blockchain most people still can't pronounce.

The Leverage Play

21Shares didn't just dip a toe—it cannonballed into the deep end with the first leveraged exchange-traded fund tracking Sui in the United States. This isn't your grandpa's index fund. It's a turbocharged instrument designed to amplify daily returns, for better or worse, signaling that institutional players see enough volatility in SUI to make the juice worth the squeeze.

Behind the Surge

The timing isn't random. Launching a product like this requires a narrative, and Sui's network is writing a compelling one. Transaction counts are punching through previous ceilings. Active addresses are multiplying. Developer activity isn't just growing—it's accelerating. The raw metrics are painting a picture of a chain hitting its stride, moving from theoretical potential to tangible, on-chain traction.

What It Really Means

For the crypto-native, it's validation. A major issuer doesn't build this kind of financial plumbing for a ghost chain. It's a bet on continued growth and, let's be honest, the kind of price swings that make a 2x or 3x ETF a tempting (and risky) proposition. It transforms SUI from a speculative asset into a tradable *thesis* within a regulated wrapper.

For traditional finance? It's another confusing ticker to add to the screen, another proof point that the digital asset ecosystem is maturing—or at least, becoming sophisticated enough to lose money in exciting new ways. After all, what's finance without a little leverage to magnify both the dreams and the disasters?

The message is clear: Sui's moment is now. The market is voting with its capital, and the tools for that vote are getting more powerful by the day. Whether this fuels sustainable growth or just another hype cycle, however, remains the trillion-dollar question.

In brief

• 21Shares gains approval to list TXXS on Nasdaq, offering 2x daily exposure to the fast-growing Sui blockchain ecosystem.
• Sui activity climbs past $10B in 30-day DEX volume and maintains strong stablecoin transfer growth for four straight months.
• SEC leverage limits keep TXXS at 2x as regulators halt higher-exposure ETF proposals, impacting future product filings.
• FalconX acquires 21Shares as the firm expands its crypto ETF lineup, including new products tied to Sui and Dogecoin.

Sui’s Rapid Activity Surge Sets the Stage for 21Shares’ New Leveraged ETF

The company introduced the 21Shares 2x SUI ETF (ticker: TXXS), which aims to return twice the daily performance of the Sui token. Nasdaq approved the product for trading, giving U.S. investors direct access to a Leveraged Sui strategy. CEO Russell Barlow said the launch reflects rising interest in simple, accessible digital-asset investment tools.

With this launch, 21shares is capitalizing on one of the winners rising to the occasion and ushering in the next era of blockchain technology—one dominated by simplicity.

Sui is a decentralized cryptocurrency that operates on the Ethereum blockchain and uses a proof-of-stake system to process peer-to-peer transactions. Its native token covers fees, governance, and staking. Network activity climbed through 2024, placing Sui among the busiest chains for decentralized exchange trading and stablecoin transfers.

Institutional use of Sui in the U.S. has been rising, according to Federico Brokate, Global Head of Business Development at 21Shares. He said integrations of assets like the USDY stablecoin are helping drive that growth. Brokate noted that TXXS gives traders a way to seek amplified exposure while keeping position sizing clear and transparent.

Several factors are now shaping the discussion around new Sui-linked financial products:

• Sui surpassed $10 billion in 30-day decentralized exchange volume, placing it among the top chains by activity.
• Stablecoin settlements on the network exceeded $180 billion for the fourth straight month.
• Large financial firms, including 21Shares and Canary Capital, filed for Sui-based spot ETFs.
• U.S. institutions increased testing of Sui’s infrastructure through stablecoin integrations.
• Regulators are reviewing rules related to ETF leverage limits as derivatives-linked products gain traction.

SEC Limits Keep TXXS at 2x as Leveraged Crypto ETF Launches in the U.S.

TXXS’s arrival comes as the U.S. Securities and Exchange Commission continues to restrict higher-leverage products, stopping several planned 3x and 5x ETFs from advancing.

Under the current interpretation of Rule 18f-4, 2x exposure remains the upper limit for daily leveraged funds. ETF.com reported that some issuers attempted to structure portfolios to bypass the rule’s testing requirements, but the SEC rejected those methods.

Bloomberg senior ETF analyst Eric Balchunas noted that it is rare for a crypto asset to debut in the U.S. with a leveraged ETF as its first listing. TXXS becomes the 74th crypto-linked ETF launched this year and the 128th on record. Analysts expect more filings to follow, given the recent pace.

21Shares has continued to expand its presence in the global crypto ETF market. The firm filed for a spot in the sui ETF in May as part of a partnership with the Sui team focused on research and new product development. Around the same time, crypto trading firm FalconX acquired 21Shares for an undisclosed amount.

Growing competition in the ETF market shows that demand for digital-asset products remains strong. With TXXS now live, the focus turns to how investors will react to the first leveraged SUI ETF in the U.S. market.

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