Bitwise Asset Management has entered the growing race to launch regulated exposure to alternative Layer 1 tokens, filing an application with the U.S. Securities and Exchange Commission for a spot exchange-traded fund tied to the SUI token.
According to regulatory documents, the proposed ETF would track the price performance of Sui’s native cryptocurrency, SUI, offering investors exposure to the asset’s value after fees and operating expenses. Coinbase Custody has been named as the fund’s custodian, while details such as the ticker symbol and sponsor fee were not disclosed.
Sui Joins the Expanding ETF Landscape
The filing places Bitwise alongside several other asset managers seeking to bring SUI-based products to U.S. markets. Canary Capital submitted the first SUI ETF application in March, followed by 21Shares, which recently launched a leveraged 2x SUI ETF. As of now, none of the spot SUI ETF proposals have received approval from regulators.
SUI currently ranks 31st by market capitalization among cryptocurrencies and serves as the native asset of the Sui Layer 1 blockchain. The network traces its roots to Meta’s former Diem initiative, which helped shape Sui’s focus on scalability and performance.
Regulatory Backdrop Remains in Focus
The filing comes amid a broader expansion of crypto-linked ETFs in the United States. Products tied to assets such as XRP, DOGE, and SOL have launched in recent months, reflecting growing investor demand for regulated access to digital assets.
While the SEC under the Biden administration maintained a cautious and enforcement-heavy approach toward crypto, the agency’s posture has shifted under current Chair Paul Atkins. The SEC has approved updated listing standards for certain exchange-traded products and signaled an effort to improve regulatory clarity for digital asset markets.
Institutional Interest Continues to Build
Industry analysts say Bitwise’s SUI ETF filing highlights continued institutional interest in expanding beyond Bitcoin and Ethereum into emerging Layer 1 ecosystems. Approval of a spot SUI ETF could give investors easier access to the asset through traditional brokerage accounts, potentially boosting adoption, liquidity, and market visibility.
As competition among asset managers intensifies, the outcome of SUI-related ETF applications may serve as an important signal for how regulators approach next-generation blockchain assets in 2026.
