Canary Capital Files for Sui-Linked Crypto ETF Amid Flurry of New Listings
March 17, 2023
In a significant move within the rapidly evolving cryptocurrency landscape, Canary Capital has filed paperwork with U.S. regulators for its sixth proposed exchange-traded fund (ETF) designed to track the spot price of the crypto token Sui. This filing marks a notable step for the firm, particularly after it registered a trust for the Sui fund in Delaware earlier this month.
Details of the Filing
According to the Form S-1 filed with the Securities and Exchange Commission (SEC) on March 17, 2023, the ETF, aptly named the Canary SUI ETF, aims to directly hold Sui (SUI), the native token associated with the layer-1 blockchain. This token serves key functions in the ecosystem, including transaction fee payments and staking. Currently, Sui is ranked as the 23rd largest cryptocurrency, boasting a market capitalization of approximately $7.36 billion, as reported by CoinGecko.
As of the latest reports, Sui is priced at $2.31, reflecting a 1.3% increase over the past day and a 7.3% rise over the week. However, it remains down significantly, registering a 56.5% decrease from its all-time peak of $5.35 set on January 5, 2023. In recent trading, the token reached a high of $2.38 before experiencing a slight decline.
Regulatory Process Ahead
Following its filing, Canary Capital must submit a Form 19b-4 with the SEC to initiate the listing process. At this stage, the form does not provide specifics on which exchange the ETF will trade on or its proposed ticker symbol.
This filing continues Canary’s trend in the crypto ETF space, having previously submitted applications for ETFs linked to various cryptocurrencies, including Solana (SOL), Litecoin (LTC), XRP (XRP), Hedera (HBAR), and Axelar (AXL).
Collaboration with World Liberty Financial
The ETF filing comes shortly after Sui announced a strategic partnership with World Liberty Financial, a crypto platform backed by former U.S. President Donald Trump. This collaboration includes significant integration of the Sui token into World Liberty’s “Macro Strategy” token reserve, with discussions on further product opportunities on the horizon.
Broader Impact on the Cryptocurrency Market
The recent influx of ETF filings reflects a growing optimism within the cryptocurrency sector, particularly in light of potential regulatory changes. Trump’s administration has signaled intentions to ease regulatory enforcement in the crypto space, which many believe could pave the way for more favorable conditions for ETF approvals.
The SEC has faced pressure to expedite its review of various crypto ETF applications, although it has historically delayed decisions. SEC Commissioner Hester Peirce noted last month that the agency intends to reassess its agenda for crypto after the Senate confirms Trump’s nominee for SEC chair, Paul Atkins. A confirmation hearing for Atkins is scheduled for March 27, having faced delays due to financial disclosure complications.
Conclusion
Canary Capital’s proposed SUI ETF represents a key development in the ongoing evolution of cryptocurrency investment vehicles. As the regulatory landscape continues to shift, stakeholders in the crypto market will be watching closely to see how this filing and others fare within the SEC’s review process. The partnership with World Liberty Financial adds another layer of intrigue, indicating a potential for further integration of Sui within mainstream financial products.
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