Grayscale Files S-1 for New SUI ETF After 21Shares Launches First Fund

Grayscale just threw its hat into the SUI ETF ring—filing an S-1 registration statement hot on the heels of 21Shares launching the first fund. The move signals a brewing institutional showdown for the smart contract platform's spot in investor portfolios.

The Race Heats Up

This isn't just another filing. It's a direct response. 21Shares got the first-mover advantage, but Grayscale's entry transforms a solo run into a head-to-head sprint. The market's watching to see who can attract real assets under management first—because in the ETF game, being first doesn't always mean being the biggest.

Why SUI? Why Now?

SUI's architecture offers a different take on scalability. For institutional players, it represents a fresh, high-potential bet beyond the Ethereum and Solana dominance. An ETF wrapper makes that bet accessible without the wallet headaches—a classic Wall Street move of packaging innovation for traditional appetites.

The Institutional Stampede

Two major filings in quick succession isn't a coincidence. It's a signal. Asset managers are scrambling to stake claims on the next layer-1 contender, betting that demand will follow the product. It's the same old finance playbook: create the product, market the narrative, and hope the dollars follow—sometimes it works, sometimes you're left holding a very expensive, empty bag.

What's Next for Investors?

More choice, more competition, and likely more volatility as these funds seek approval and launch. For the cynical observer, it's another reminder that in crypto, the real money often isn't in holding the asset, but in selling the shovel—or in this case, the legally-compliant, fee-generating wrapper for it.

TLDR

• Grayscale filed an S-1 to launch the Grayscale Sui Trust ETF on Dec 5, 2025.
• The proposed ETF would provide regulated exposure to the SUI cryptocurrency.
• Grayscale’s filing comes days after 21Shares launched the first SUI ETF in the U.S.
• Grayscale continues expanding its ETF lineup, including Chainlink and Dogecoin products.

Grayscale Investments has filed an S-1 registration statement with the SEC for a new SUI ETF, aiming to track the price of the SUI cryptocurrency. This move follows the recent launch of the first SUI-based ETF by 21Shares on Nasdaq, signaling growing interest in crypto ETFs. While Grayscale’s filing is still unverified by the SEC, it reflects the company’s ongoing strategy to expand its digital asset investment products.

Grayscale Submits S-1 for New SUI ETF

On December 5, 2025, Grayscale Investments filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), seeking approval for a new cryptocurrency exchange-traded fund (ETF), the Grayscale Sui Trust ETF. The product aims to track the market price of the SUI cryptocurrency, minus fees.

However, the submission lacks official verification from SEC sources at the time of writing, leaving the status of the filing uncertain. This MOVE comes shortly after 21Shares launched the first-ever Sui-based ETF on Nasdaq.

The proposed Grayscale Sui Trust ETF would provide investors with direct exposure to the SUI cryptocurrency through a regulated, publicly traded security. Investors would not need to manage or store SUI directly. While the filing is pending approval, it aligns with a broader trend of increasing cryptocurrency ETF offerings from Grayscale. The company has previously introduced products tied to popular digital assets like chainlink and Dogecoin.

Grayscale Sui Trust ETF and 21Shares’ Success

Grayscale’s submission for a new SUI ETF comes just days after 21Shares debuted the first SUI ETF on Nasdaq under the ticker TXXS. The 21Shares product provides investors with a 2x daily Leveraged exposure to SUI’s price movements through derivatives, rather than directly holding the cryptocurrency. The 21Shares ETF is designed for short-term speculative trading, and it traded over 4,700 shares on its opening day.

Despite the differences in structure, both ETFs seek to meet rising investor demand for exposure to the sui ecosystem. The successful debut of the 21Shares product likely played a role in spurring Grayscale’s own move to file for an SUI-based ETF. By offering a regulated vehicle for SUI investments, Grayscale aims to tap into the growing interest in the cryptocurrency sector.

The SUI Market and Grayscale’s Strategy

SUI, the native cryptocurrency of the Sui blockchain, currently trades at $1.56, with a market capitalization of approximately $583 million. Grayscale’s Sui Trust ETF WOULD provide a way for investors to gain exposure to the asset without directly purchasing or storing it. The proposed product would mirror the price of SUI, minus any applicable fees.

Grayscale’s push to expand its ETF offerings comes as part of a broader strategy to provide regulated investment products for the digital asset space. The firm has seen success with its previous single-asset ETFs, including offerings linked to Chainlink and Dogecoin. The launch of the SUI ETF, if approved, would further solidify Grayscale’s position in the cryptocurrency investment market.

While the filing is still under review, Grayscale’s efforts signal that the company is looking to expand its suite of cryptocurrency investment products. This filing follows earlier filings for other digital assets, such as a potential spot Zcash ETF and the Chainlink ETF, which debuted on the NYSE Arca earlier this week. These moves reflect Grayscale’s continued focus on providing innovative solutions for crypto investors.

Challenges and Future of Crypto ETFs

Transforming private crypto trusts into publicly traded ETFs is a complicated process, and not all applications receive approval. While 21Shares’ successful launch of the SUI ETF in the U.S. demonstrates growing demand for crypto ETFs, the SEC’s approval process remains unpredictable.

Similar applications for other digital assets, like the Zcash ETF, are still under review. Grayscale’s S-1 filing is part of the broader trend of crypto asset managers seeking to make digital assets more accessible to mainstream investors through regulated financial products.

The future of cryptocurrency ETFs, including Grayscale’s proposed SUI ETF, hinges on how regulators respond to the evolving market and its associated risks. For now, investors can only wait for confirmation from the SEC before any further steps are taken.