The Nasdaq has officially filed a 19b-4 form with the U.S. Securities and Exchange Commission, marking a significant move towards bringing the 21Shares SUI ETF to U.S. markets. The move represents a key moment for Sui, a blockchain network that has recently faced challenges but is now experiencing a recovery that has rejuvenated investor confidence.
This filing is poised to launch a spot SUI ETF, which could be among the first altcoin-based ETFs in the U.S., following Ethereum’s inclusion in the market. The formal review process for the SUI ETF is now underway, signaling the growing institutional interest in Sui and broader altcoin exposure.
The filing, which marks the beginning of the review process by the SEC, follows 21Shares’ earlier S-1 registration in April. This registration, coupled with the filing, represents a strategic push toward institutionalizing Sui in the U.S. market. It is seen as a step toward making the ecosystem more accessible to a wider range of investors, particularly institutional players looking for regulated products to invest in altcoins.
The interest in Sui-based products is already evident, with more than $300 million invested globally in Sui-based Exchange Traded Products, primarily through listings on Euronext Paris and Amsterdam. The growing demand for regulated U.S. exposure underscores the increasing interest in decentralized finance platforms, gaming, and real-world asset tokenization powered by Sui's blockchain architecture.
In a statement, the Sui Foundation highlighted the importance of this move: “The 19b-4 filing now officially posted to the SEC’s public register marks the formal beginning of the review process.” The filing comes at a time when Sui has gained significant momentum, supported by its technological advancements and an expanding user base.
Sui's Technological Edge
One of the driving factors behind the success of Sui is its unique object-oriented programming and horizontally scalable architecture. This innovative design is well-suited for high-performance decentralized applications, including those in DeFi, gaming, and RWA tokenization.
The Sui blockchain's scalability has allowed it to process large amounts of data and transactions in real time, offering cross-chain compatibility and improved user experience. As a result, Sui has positioned itself as a prime candidate for institutional adoption in the rapidly growing altcoin market.
According to DeFiLlama, Sui ranks 8th in total value locked, with $1.944 billion deployed across its various platforms. Additionally, the stablecoin market on Sui has seen impressive growth, with a market cap surpassing $1.1 billion, marking a 190% year-to-date increase.
Notably, Sui also saw a remarkable rise in stablecoin transfer volume, reaching over $110 billion in May alone, further solidifying its reputation as a robust blockchain ecosystem that caters to the needs of both retail and institutional investors.
The Sui Network’s Recovery After the Cetus Hack
Despite a challenging period earlier in the year, Sui has shown resilience. In April 2025, the network faced a significant setback when the Cetus decentralized exchange was hacked, leading to a $260 million loss. This event led to a temporary freeze on the network, raising concerns over decentralization and security.
In response, Sui implemented a $10 million security overhaul, which included improved shared accountability measures and direct support for dApp builders. These efforts were aimed at restoring user confidence and enhancing the network's security infrastructure. Moreover, Sui’s TVL has since rebounded, showcasing the platform’s ability to recover from a major setback.
Despite this recovery, the Sui network has faced criticism over its controversial $162 million recovery plan for the Cetus incident, which some argue failed to adequately address decentralization concerns. However, the quick rebound in TVL and increasing institutional interest indicates that the platform has successfully navigated the crisis and continues to grow.
SUI Price Recovery and Optimism for Future Growth
As of June 2025, SUI, the native token of the Sui network, has made significant strides. The price has rebounded by 18% since the beginning of June, trading at $3.47 at the time of writing. Over the last 24 hours, SUI has gained nearly 2%, further indicating a positive price trend.
Sui’s recovery from recent setbacks, coupled with the growing interest from institutional investors, has positioned the ecosystem for long-term success. Kevin Boon, President of Mysten Labs, the company behind Sui, expressed his optimism about the platform's future: “The milestone of a NASDAQ filing is a powerful moment. We are proud to help 21Shares build toward a world where every investor can access SUI.”
The filing for a SUI ETF is a significant development in the ongoing trend of altcoin-based ETFs, which have gained traction as institutional interest in crypto assets continues to grow. Bitcoin ETFs have been the most widely recognized crypto-related ETFs, but the success of products like Ethereum ETFs and the rise of other altcoin-based ETFs, like the SUI ETF, reflect the expanding appeal of digital assets beyond Bitcoin.
Analysts are watching closely to see how the SEC will handle the growing wave of altcoin ETFs. Bloomberg analyst Eric Balchunas has pointed out that the demand for altcoin ETFs might not match the massive interest seen with Bitcoin ETFs, but he suggests that the rapid filing of altcoin-based ETFs like Solana’s Osprey ETF could accelerate the SEC's timeline for approval.
This potential ETF approval also coincides with the increasing demand for crypto exposure from institutional investors. As traditional financial markets continue to embrace blockchain technology, the launch of the SUI ETF could pave the way for further institutional adoption of Sui and other emerging altcoins.
The Potential for a Broader Altcoin ETF Market
As the SUI ETF filing progresses, it signals a growing acceptance of alternative cryptocurrencies in the mainstream financial markets. If approved, the SUI ETF could become a key tool for institutional investors seeking regulated exposure to decentralized finance platforms, gaming, and RWA tokenization.
The continued rise of the altcoin market and the increasing number of crypto-related products, such as ETFs and ETPs, reflect the broader trend of digital asset integration into traditional finance. This creates exciting opportunities for investors, with the potential for significant price appreciation as adoption expands.
For the Sui network, the upcoming SUI ETF represents a major milestone in its evolution, positioning it as a frontrunner in the altcoin space. With its scalable blockchain architecture and growing adoption across diverse sectors, Sui is set to play a critical role in the future of decentralized finance.
The Sui network’s recovery and the filing for the SUI ETF demonstrate the platform’s resilience and long-term potential. As the crypto market continues to mature and attract institutional investors, Sui is well-positioned to capitalize on its strong technological foundation and growing ecosystem.