- The SEC’s formal review of Canary’s SUI ETF signals progress toward potential regulatory approval for the Layer-1 blockchain asset.
- Futures open interest for SUI has surged to $1.2 billion, indicating increased trader confidence and institutional attention.
- SUI’s price momentum remains strong as it trades above its long-term average and approaches a crucial resistance zone at $4.00.
The U.S. Securities and Exchange Commission has officially moved Canary Capital’s spot SUI ETF proposal into its next review stage. This shift marks the start of the “institution of proceedings” phase, which could pave the way for SUI to become one of the next digital assets with a spot exchange-traded fund.
Canary Capital first filed for the spot ETF in March, following up with an S-1 registration with the SEC. The fund was registered in Delaware earlier this year. The agency initially delayed its decision, but the latest move marks the beginning of a formal investigation period, signaling possible progress toward an eventual approval.
Rising Institutional Interest in the SUI Blockchain
Canary is not alone in targeting a spot SUI ETF. Asset manager 21Shares has also filed a separate application. As part of its strategy, 21Shares announced a collaboration with the Sui Network to enhance institutional access to the Layer-1 blockchain protocol. The growing number of filings underlines the increasing institutional interest in SUI-based investment products.
In a related development, the SEC has approved the Bitwise Crypto Index ETF, although it remains on hold before full operation. This index includes SUI alongside larger digital assets such as Bitcoin, Ethereum, and XRP. Its inclusion adds further legitimacy to SUI’s standing in the broader cryptocurrency market.
Technical Indicators Suggest Upward Movement
Technical data from Glassnode shows a notable rise in open interest for SUI futures, now totaling $1.2 billion. This places SUI sixth among all cryptocurrencies by futures open interest. trailing only major coins. The price of SUI currently trades at $3.95, remaining above the 200-day moving average of $2.73.
With a relative strength index near 66, SUI still has room for upward price action. Analysts are monitoring a potential breakout past the $4.00 level, with targets ranging from $4.20 to $5.00. If the ETF gains approval, further moves toward $5.50 to $6.00 could be within reach.
