Institutional access to Sui expands in the U.S. as the new SUI ETF debuts on a major equity venue, underscoring rising demand for crypto exposure.
Summary
21Shares brings first Sui-based ETF to Nasdaq
Switzerland-based issuer 21Shares has listed the first exchange-traded fund tracking the price of Sui in the United States, adding to a fast-growing roster of digital asset products. The 21Shares 2x SUI ETF, trading under the ticker TXXS, was approved for trading on the Nasdaq exchange on Thursday.
This leveraged ETF is structured to deliver 200% of the daily return of the Sui token, rather than simple one-to-one price tracking. That said, such exposure is intended for sophisticated traders prepared to manage daily rebalancing effects and heightened volatility.
Strategy, leverage and regulatory backdrop
Leveraged crypto ETFs rely on derivatives to amplify returns, which significantly increases both potential gains and losses. Moreover, regulators have been closely scrutinizing these structures. The U.S. Securities and Exchange Commission recently halted the potential launch of proposed 3x and 5x leveraged ETFs that were in the pipeline.
“While 2x leverage had long been seen as the ceiling under Rule 18f-4, some issuers believed there was a possible loophole in how the derivatives rule was written,” ETF.com noted. However, by structuring portfolios in particular ways, these issuers tried to use something other than the underlying asset as the reference portfolio for the VaR test, a practice the SEC has now explicitly rejected.
Sui network fundamentals and on-chain growth
Sui is described as a decentralized cryptocurrency built on the Ethereum blockchain, using a proof-of-stake consensus mechanism to validate transactions. With this design, transfers occur peer-to-peer, improving transparency and reducing reliance on intermediaries. Its native token supports transaction fees, network governance and staking.
On-chain activity has been robust. According to Thursday’s release, Sui has surpassed $10 billion in 30-day DEX volume and has processed over $180 billion in stablecoin transfer volume for the fourth consecutive month. Moreover, these metrics help underpin broader Sui token adoption metrics at a time when institutional products are beginning to launch.
21Shares’ product pipeline and partnership with Sui
Back in May, 21Shares filed a registration statement with the SEC for a spot Sui ETF, and simultaneously announced a “strategic partnership” with the Sui ecosystem. The collaboration aims to deliver product co-development, research reports and other joint initiatives that could deepen capital markets integration if a spot fund is eventually approved.
“Widespread adoption of digital assets hinges on the market’s ability to offer consumers uncomplicated applications of the technology, and investors are eager to jump on products that seek to amplify those investment returns,” said Russell Barlow, CEO of 21Shares. “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.” The comments highlight how the leveraged sui etf fits into the firm’s broader strategy.
Crypto ETF market hits new milestones
Bloomberg senior ETF analyst Eric Balchunas pointed out that it is unusual for the first ETF tied to a given crypto asset to be a leveraged product. Nevertheless, TXXS marks the 74th crypto ETF to launch this year and the 128th overall, according to Bloomberg, underscoring the rapid pace of crypto etf launches across global markets.
“We expect another 80 in the next 12 months,” Balchunas said Thursday in a post on X, suggesting that issuers will continue to expand their suites across different tokens, strategies and risk profiles. However, the prominence of leverage also keeps the spotlight on leveraged crypto etf risks, from compounding effects to potential tracking deviations in turbulent markets.
21Shares after FalconX acquisition
Last month, crypto trading firm FalconX acquired 21Shares for an undisclosed amount. The deal came around the same time 21Shares rolled out a leveraged Dogecoin ETF, further emphasizing the issuer’s focus on high-octane thematic strategies. Moreover, the acquisition could give 21Shares deeper liquidity access and trading expertise as it scales products like 21shares leveraged sui in public markets.
Outlook for Sui-linked ETFs
The launch of TXXS as the first sui etf crypto vehicle in the U.S. ETF universe marks a new phase for Sui’s institutional footprint. While the current product offers 2x daily exposure rather than spot tracking, the earlier spot SUI ETF filing signals that 21Shares is positioning for potential future demand in more traditional, unleveraged exposures.
For now, TXXS gives sophisticated traders a way to express directional views on Sui via a listed instrument on Nasdaq. That said, the combination of daily leverage, derivatives usage and sector volatility means the ETF will likely remain a niche tool for short-term strategies rather than a core holding for long-term investors.
In summary, the debut of TXXS on Nasdaq reinforces Sui’s growing presence in capital markets, adds another leveraged option to the digital asset toolkit and contributes to the expanding wave of crypto ETF launches expected to continue into the next 12 months.
