Canary Capital Makes History by Registering SUI-Based Exchange-Traded Fund (ETF) in Delaware

Canary Capital has created history in cryptocurrency markets through its application to establish a Sui (SUI)—based Exchange-Traded Fund (ETF) in Delaware.

Canary Capital has applied to register a trust for a new exchange-traded fund (ETF) that would hold shares of the Sui (SUI) cryptocurrency, according to a regulatory filing on Wednesday.

The move by Canary Capital, a pioneer in cryptocurrency investment, comes as the firm is seeking to launch the first major altcoin blockchain spot ETF.

The application for the trust was submitted with the Division of Corporations of the State of Delaware, marking a crucial step before Canary Capital can file its proposal with the U.S. Securities and Exchange Commission (SEC) for final authorization.

If approved, the Canary SUI ETF would be one of the earliest major altcoin ETFs to launch, following the recent filings for Bitcoin (BTC) and Ethereum (ETH) ETFs by several large institutions.

Earlier this year, Canary Capital attempted to register ETF trusts for Solana (SOL), Axelar (AXL), and Hedera (HBAR) with the SEC, but its applications were rejected without comment from the agency.

The applications were part of an initiative by the Trump administration to broaden the range of investment products available to U.S. retail investors.

If Donald Trump returns to presidential office, it is likely that the administration will continue to support policies favorable to the cryptocurrency industry.

This support could lead to the approval of non-Bitcoin ETFs in the coming months, especially considering the recent actions by BlackRock and other large institutions to file for Bitcoin ETFs.

The SUI price showed a slight uptick as the ETF applications came into view.

After the ETF trust completed Delaware registration, the price of SUI rose by 2.5% during a brief increase in the market, advancing from $2.50 to $2.75.

This news was well-received by the market as investors anticipate increased institutional adoption of Sui, although there are still doubts about SEC approval for the fund.

ETFs continue to play a significant role in cryptocurrency price dynamics, although this news did not manage to generate substantial appreciation in the market.

The market reacted similarly when BlackRock and Fidelity submitted their applications for a Bitcoin ETF, leading to a surge in the price and a shift in opinion among traders.

The application for the trust comes as Congress is still working on legislation that would allow for the creation of crypto ETFs.

This process has been slow and unpredictable, with the SEC showing skepticism towards previous applications for altcoin ETFs.

If the Trump administration continues to support crypto-friendly policies, it could speed up the approval of altcoin ETFs following the approval of Bitcoin and Ethereum ETFs.

In a scenario with widespread institutional participation, significant institutional investments in SUI could increase its market capitalization despite the SEC’s concerns.

The SEC has previously deferred approving several applications for non-Bitcoin ETFs due to concerns about market manipulation, illiquidity, and excessive trading volatility in the altcoin market.

Any unpredictable regulatory actions affecting SUI’s compliance status may lead to changes in its market value.

Any change to SUI or its acceptance would have a significant impact on the broader crypto market.

If the Sui ETF secures approval, it could open up possibilities for ETFs that track the performance of other Layer 1 blockchains such as Avalanche (AVAX), Polkadot (DOT), and Cosmos (ATOM).

However, if the application for the Sui ETF is rejected, it could create obstacles for institutions seeking to deploy non-Bitcoin cryptocurrency assets.