Cboe Global Markets Requests SEC Approval for New ETF
Cboe Global Markets has submitted a formal request to the Securities and Exchange Commission (SEC) to advance Canary Capital’s proposal for a new exchange-traded fund (ETF) centered around the SUI cryptocurrency. Since its inception in May 2023, the SUI blockchain, designed as a layer-1 network, aims to rival established players like Ethereum and Solana. Following an earlier submission to the SEC by Canary for this innovative financial product, Cboe now awaits the regulatory body’s feedback to proceed with the initiative.
Canary’s Broader ETF Ambitions
Canary, based in Nashville, has ambitions beyond the SUI ETF and is also seeking regulatory approval for several other ETFs focused on various alternative cryptocurrencies, including those linked to well-known collections like Pudgy Penguins, as well as significant coins such as Solana and XRP. The primary advantage of crypto ETFs is their ability to give investors exposure to the digital asset market without the complexities of direct purchase and secure storage.
Current Market Status of SUI
Current trading data from CoinGecko shows that SUI is valued at approximately $1.98, a slight decrease from the previous day. Holding a market capitalization of $6.4 billion, it ranks as the 22nd largest cryptocurrency. Developed by former engineers from Facebook, the SUI network employs a proof-of-stake consensus mechanism, similar to its key competitors, SOL and ETH. Various projects are running on this platform, including SatLayer, which facilitates Bitcoin staking, and the widely-used wallet Phantom that supports both Bitcoin and Solana.
Challenges Faced by SUI
However, the SUI team has faced scrutiny, most notably in October of last year when they dismissed allegations of insider trading after data suggested that a wallet associated with the Sui Foundation gained $400 million during a rapid price surge of the SUI token. Additionally, the network has encountered operational hiccups, such as a significant service interruption in November due to a bug that halted activity for about two hours.
Regulatory Landscape and Future Prospects
Meanwhile, the SEC is also reviewing applications from other asset managers like VanEck, 21Shares, and Bitwise, who are optimistic about gaining approval for ETFs focused on a broader range of digital currencies following last year’s successful launch of Bitcoin and Ethereum ETFs.
This development underlines a growing interest in crypto-based financial instruments, pushing the limits of regulatory frameworks in an evolving market.
