Key Insights:
- Sui grew to become the goal of 5 crypto ETF filings as Bitwise joined 4 current candidates racing to seize publicity to the layer-1 blockchain.
- Bitwise predicted greater than 100 crypto-linked ETFs would launch within the U.S. throughout 2026 following the SEC’s October 2025 publication of generic itemizing requirements.
- The one reside Sui-related product, 21Shares’ 2x Lengthy Sui ETF, held $1.22 million in AUM as of December 17, representing a fraction of current XRP and Solana launches that attracted a whole bunch of hundreds of thousands.
Bitwise filed an S-1 registration assertion with the SEC on December 18 for a spot Sui ETF, changing into the fifth issuer concentrating on the layer-1 blockchain as the agency’s predicted “ETF-palooza” accelerated into altcoin markets.
The submitting joined not less than 126 crypto ETF purposes awaiting regulatory assessment as the SEC’s October 2025 generic itemizing requirements opened the floodgates for specialised digital asset merchandise.
Bloomberg ETF analyst James Seyffart noted that issuers have thrown “a whole lot of product on the wall,” with not less than 126 crypto ETF filings pending regulatory assessment.
Bitwise’s prediction known as for greater than 100 crypto-linked ETFs to launch throughout 2026, with the agency pointing to the SEC’s publication of generic itemizing requirements as the catalyst for the enlargement.
The generic requirements allowed issuers to launch merchandise below a basic algorithm relatively than requiring case-by-case approval for every cryptocurrency.
Seyffart expressed 100% settlement with Bitwise’s forecast, including that the market would seemingly see substantial liquidations in crypto ETP merchandise by the tail finish of 2026 or via 2027.
The analyst characterised the present submitting wave as a product-market match check the place issuers competed to seize first-mover benefit in specialised altcoin classes.
Sui Market Reveals Small Traction Regardless of ETF Optimism
The Sui market demonstrated restricted institutional product penetration as of mid-December 2025, with just one reside US-listed product offering publicity to the blockchain.
The 21Shares 2x Lengthy Sui ETF (TXXS) launched on December 4 and managed $1.22 million in AUM as of December 17, in accordance with 21Shares’ web site.
Buying and selling quantity for TXXS reached $2.5 million since launch, reflecting modest investor curiosity within the leveraged product.
The 2x Lengthy construction offered double the every day value motion of Sui, positioning the ETF as a buying and selling automobile relatively than a long-term holding for institutional portfolios.
The absence of a spot Sui product represented a big hole available in the market construction, with leveraged publicity attracting a special investor profile than direct cryptocurrency holdings, particularly throughout the current downturns.
Spot merchandise traditionally captured considerably bigger asset flows from institutional and retail buyers searching for easy publicity with out leverage mechanics.
Moreover, current crypto ETF launches established demanding benchmarks for new altcoin merchandise coming into the market.
Spot XRP ETFs collected $1 billion in mixed AUM throughout seven merchandise as of December 18, with the primary spot XRP ETF launch reaching $58 million in every day quantity.
Solana spot ETFs additionally attracted robust institutional curiosity, with Bitwise’s BSOL recording $57 million in quantity on its debut.
VanEck’s VSOL and different competing merchandise contributed to 14 consecutive days of web investor assist as of mid-November 2025, contrasting with outflows from Bitcoin and Ethereum merchandise throughout the identical interval.
Generic Requirements Allow Altcoin Growth
The SEC’s publication of generic itemizing requirements created a clearer regulatory roadmap for specialised cryptocurrency merchandise, eradicating the case-by-case approval bottleneck that constrained earlier ETF launches.
The framework allowed issuers to file purposes below standardized guidelines protecting custody, surveillance-sharing preparations, and market construction necessities.
Bitwise characterised the regulatory shift as setting the stage for “ETF-palooza” in 2026, with the agency projecting exponential development in accepted merchandise.
The prediction assumed continued regulatory readability below a crypto-friendly administration and sustained institutional demand for diversified digital asset publicity.
The submitting wave included merchandise concentrating on varied market segments, from main layer-1 blockchains like Sui and Avalanche to DeFi tokens and sector-specific baskets.
Issuers calculated that early approval may set up model recognition and seize market share earlier than opponents launched comparable merchandise.
Seyffart’s forecast of coming liquidations mirrored issues about product viability in an oversaturated market.
Historic precedent from conventional ETF markets confirmed that merchandise failing to attain essential mass in AUM confronted closure inside 18-24 months of launch, notably in crowded classes with restricted differentiation.
The Sui blockchain entered the crypto ETF competitors with restricted confirmed institutional demand, counting on blockchain fundamentals and ecosystem growth to draw capital.
The layer-1 platform competes in opposition to established alternate options, together with Solana and Ethereum layer-2 options for institutional portfolio positioning.
The $1.22 million in AUM for TXXS served as a baseline for Sui’s curiosity, although the leveraged construction sophisticated direct comparisons with spot merchandise.
Along with attracting buyers via its fundamentals, Sui ETFs’ success depends upon broader market situations and Sui’s differentiated worth proposition.
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