Asset Manager Canary Capital Is Seeking SEC Approval to Launch a Spot Sui Exchange-Traded Fund That Features Staking

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Canary Capital, an asset manager, is aiming to launch a spot cryptocurrency exchange-traded fund (ETF) that tracks the price of Sui (SUI) and may engage in staking.

The asset manager is seeking approval from the Securities and Exchange Commission (SEC) to launch its SUI ETF product, which would be the first ETF designed to track the performance of the prominent layer-1 network.

The proposed ETF may stake portions of its holdings through trusted staking providers.

“The Sponsor may stake, or cause to be staked, all or a portion of the Trust’s SUI through one or more trusted staking providers. In consideration for any staking activity in which the Trust may engage, the Trust would receive all or a portion of the staking rewards generated through staking activities, which may be treated as income to the Trust,” the filing wrote.

Canary Capital, an asset manager known for its interest in cryptocurrencies, is setting up a Delaware trust for its SUI product. The move comes in response to the SEC's recent approval of spot Bitcoin and Ethereum ETFs.

Cboe stated that sufficient means exist to prevent fraud and manipulation, similar to the justifications accepted in those earlier approvals.

Canary Capital is actively seeking to expand its offerings with a range of crypto ETFs. The firm is exploring the possibility of launching ETFs that track other major cryptocurrencies, such as Litecoin, XRP, Solana, and Hedera.

Canary's Litecoin ETF has already appeared on the Depository Trust and Clearing Corporation (DTCC) with the ticker LTCC, indicating that preparations for its launch are progressing.