21Shares Sui ETF reports Q2 2026 NAV decline

Filed pursuant to Rule 424(b)(3)

Registration No. 333-286878

21SHARES SUI ETF

SUPPLEMENT NO. 3 DATED AUGUST 12, 2026

TO THE PROSPECTUS DATED FEBRUARY 23, 2026

This prospectus complement
(this “Complement”) is a part of and needs to be learn along with the prospectus of 21Shares Sui ETF (the “Belief”),
dated February 23, 2026 (the “Prospectus”). Until in any other case outlined herein, capitalized phrases used on this Complement
shall have the identical meanings as within the Prospectus.

The aim of this Complement
is to incorporate the Belief’s Quarterly Report on Type 10-Q filed on August 12, 2026.

Quarterly Report on Type 10-Q

On August 12, 2026, the Belief
filed its Quarterly Report on Type 10-Q (the “Report”) with the Securities and Change Fee. The Report (with out
displays) is connected to this Complement.

UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549

FORM
10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly interval ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition interval from___________ to____________

Fee
File Quantity 001-43145

21Shares
Sui ETF

(Precise
Title of Registrant as Laid out in Its Constitution)

Delaware		33-6749416
(State or different jurisdiction of		(I.R.S. Employer
incorporation or group)		Identification No.)

158
W. 27^th Avenue

New
York, New York 10001

(646)
370-6016

(Deal with,
together with zip code, and phone quantity, together with space code, of registrant’s major government workplaces)

Securities
registered pursuant to Part 12(b) of the Act:

Title of every class:		Buying and selling Image(s)		Title of every change on which registered:
Shares of Helpful Curiosity of 21Shares Sui ETF		TSUI		The Nasdaq Inventory Market LLC

Securities
registered or to be registered pursuant to Part 12(g) of the Act: None.

Point out
by verify mark whether or not the registrant (1) has filed all reports required to be filed by Part 13 or 15(d) of the Securities
Change Act of 1934 in the course of the previous 12 months (or for such shorter interval that the registrant was required to file such reports),
and (2) has been topic to such submitting necessities for the previous 90 days. ☒ Sure ☐ No

Point out
by verify mark whether or not the registrant has submitted electronically each Interactive Information File required to be submitted pursuant to Rule 405
of Regulation S-T (§232.405 of this chapter) in the course of the previous 12 months (or for such shorter interval that the registrant
was required to submit such information). ☒ Sure ☐ No

Point out
by verify mark whether or not the registrant is a big accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
firm, or an rising progress firm. See the definitions of “massive accelerated filer”, “accelerated filer”,
“smaller reporting firm” and “rising progress firm” in Rule 12b-2 of the Change Act.

Massive Accelerated Filer	☐	Accelerated Filer	☐
Non-Accelerated Filer	☒	Smaller Reporting Firm	☒
Rising Progress Firm	☒

If
an rising progress firm, point out by verify mark if the registrant has elected to not use the prolonged transition interval for complying
with any new or revised monetary accounting requirements offered in Part 13(a) of the Change Act. ☐

Point out
by verify mark whether or not the registrant is a shell firm (as outlined in Rule 12b-2 of the Change Act.). ☐ Sure ☒
No

The registrant had 980,000 excellent shares
as of August 7, 2026.

STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS

This
quarterly report on Type 10-Q contains “forward-looking statements” that typically relate to future occasions or future efficiency.
In some instances, you possibly can determine forward-looking statements by terminology equivalent to “might,” “will,” “ought to,”
“count on,” “intend,” “plan,” “anticipate,” “consider,” “estimate,”
“predict,” “potential” or the destructive of those phrases or different comparable terminology. All statements (different
than statements of historic truth) included on this report that tackle actions, occasions or developments that may or might happen in
the longer term, together with such issues as actions within the digital asset markets and indexes that observe such actions, the operations of
21Shares Sui ETF (the “Belief”), the plans of 21Shares US LLC (the “Sponsor”), because the sponsor of the Belief, and
references to the Belief’s future success and different comparable issues, are forward-looking statements. These statements are solely predictions.
Precise occasions or outcomes might differ materially. These statements are based mostly upon sure assumptions and analyses the Sponsor has made
based mostly on its notion of historic tendencies, present circumstances and anticipated future developments, in addition to different elements applicable
within the circumstances.

Whether or not
or not precise outcomes and developments will conform to the Sponsor’s expectations and predictions, nevertheless, is topic to a quantity
of dangers and uncertainties, together with the particular issues mentioned on this report, normal financial, market and enterprise circumstances,
modifications in legal guidelines or laws, together with these regarding taxes, made by governmental authorities or regulatory our bodies, and different world
financial and political developments. Consequently, all of the forward-looking statements made on this report are certified by these
cautionary statements, and there could be no assurance that precise outcomes or developments the Sponsor anticipates to happen can be realized
or, even when considerably realized, that they’ll end result within the anticipated penalties to, or have the anticipated results on, the Belief’s
operations or the worth of its widespread shares of useful curiosity (the “Shares”).

Ought to
a number of of those dangers mentioned in “Danger Components” or different uncertainties materialize, or ought to underlying assumptions
show incorrect, precise outcomes might differ materially from these described in forward-looking statements. Ahead-looking statements are
made based mostly on the Sponsor’s beliefs, estimates and opinions on the date the statements are made, and neither the Belief nor the
Sponsor is underneath an obligation or undertakes an obligation to replace forward-looking statements if these beliefs, estimates and opinions or
different circumstances ought to change, apart from as required by relevant legal guidelines. Furthermore, neither the Belief, the Sponsor, nor another
particular person assumes accountability for the accuracy and completeness of any of those forward-looking statements. Traders are due to this fact cautioned
in opposition to putting undue reliance on forward-looking statements.

Rising
Progress Firm

The
Belief is an “rising progress firm” as outlined within the Jumpstart Our Enterprise Startups Act of 2012 (the “JOBS Act”).
For so long as the Belief is an rising progress firm, not like different public firms, it won’t be required to, amongst different issues:
(i) present an auditor’s attestation report on administration’s evaluation of the effectiveness of our system of inner management
over monetary reporting pursuant to Part 404(b) of the Sarbanes-Oxley Act of 2002; or (ii) adjust to any new audit guidelines adopted
by the Public Firm Accounting Oversight Board after April 5, 2012, until the U.S. Securities and Change Fee (“SEC”)
determines in any other case.

The
Belief will stop to be an “rising progress firm” upon the earliest of (i) it having $1.235 billion or extra in
annual gross revenues, (ii) the date on which the Belief is deemed to be a “massive accelerated filer,” (iii) it issuing
greater than $1.0 billion of non-convertible debt over a three-year interval or (iv) the final day of the fiscal yr following
the fifth anniversary of its preliminary public providing.

In
addition, Part 107 of the JOBS Act additionally offers that an rising progress firm can make the most of the prolonged transition
interval offered in Part 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), for complying
with new or revised accounting requirements. In different phrases, an rising progress firm can delay the adoption of sure accounting requirements
till these requirements would in any other case apply to non-public firms. The Belief intends to make the most of the advantages of the prolonged
transition interval.

21Shares
Sui ETF

Desk
of Contents

		Web page
Half I. FINANCIAL INFORMATION		1

Merchandise 1. Monetary Statements (Unaudited)		1
Assertion of Belongings and Liabilities at June 30, 2026 (Unaudited)		1
Schedule of Funding at June 30, 2026 (Unaudited)		2
Statements of Operations for the three months ended June 30, 2026 (Unaudited) and the interval from November 18, 2025 (date of preliminary seeding) by way of June 30, 2026 (Unaudited)		3
Statements of Modifications in Internet Belongings for the three months ended June 30, 2026 (Unaudited) and the interval from November 18, 2025 (date of preliminary seeding) by way of June 30, 2026 (Unaudited)		4
Notes to Unaudited Monetary Statements		5
Merchandise 2. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations		15
Merchandise 3. Quantitative and Qualitative Disclosures About Market Danger		19
Merchandise 4. Controls and Procedures		19

Half II. OTHER INFORMATION		20

Merchandise 1. Authorized Proceedings		20
Merchandise 1A. Danger Components		20
Merchandise 2. Unregistered Gross sales of Fairness Securities and Use of Proceeds		20
Merchandise 3. Defaults Upon Senior Securities		20
Merchandise 4. Mine Security Disclosures		20
Merchandise 5. Different Info		20
Merchandise 6. Displays		21
Signatures		22

PART
I – FINANCIAL INFORMATION:

Merchandise
1. Monetary Statements (Unaudited)

21SHARES
SUI ETF

STATEMENT
OF ASSETS AND LIABILITIES

	June 30, 2026
	(Unaudited)^*
Belongings
Funding in SUI, at truthful worth (value $23,207,147)	$	12,638,703
Complete belongings		12,638,703

Liabilities
Sponsor Payment payable		845
Complete liabilities		845

Commitments and contingent liabilities (Observe 8)
Internet belongings	$	12,637,858

Internet belongings include
Paid-in-capital	$	24,666,447
Amassed earnings (loss)		(12,028,589	)
	$	12,637,858

Shares issued and excellent, no par worth, limitless quantity licensed		910,000	#
Internet asset worth per Share	$	13.89

No
comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

On
February 22, 2026, there was a 2-for-1 reverse share break up – See Observe 1. Historic shares excellent and web asset worth per
share have been adjusted to replicate the 2-for-1 reverse share break up on a retroactive foundation.

The accompanying
notes are an integral a part of the monetary statements.

21SHARES
SUI ETF

SCHEDULE
OF INVESTMENT

June
30, 2026 (Unaudited)^*

	Amount of SUI		Value		Truthful Worth			% of Internet Belongings
Funding in SUI**		18,185,184.2145	$	23,207,147	$	12,638,703			100.01	%
Complete investments		18,185,184.2145	$	23,207,147	$	12,638,703			100.01	%
Liabilities in extra of different belongings						(845	)		(0.01	)%
Internet belongings					$	12,637,858			100.00	%

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

**	94.75% of SUI held was staked as of June 30, 2026 – See Observe 2.

The
accompanying notes are an integral a part of the monetary statements.

21SHARES
SUI ETF

STATEMENTS
OF OPERATIONS

	Three Months Ended June 30, 2026^*			November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*
	(Unaudited)			(Unaudited)
Funding earnings
Staking Rewards	$	46,205		$	68,696
Complete earnings		46,205			68,696

Bills
Sponsor Payment		11,228			15,298
Staking Payment		11,551			17,174
Complete bills		22,779			32,472
Internet funding earnings		23,426			36,224

Realized and alter in unrealized achieve (loss)
Internet realized achieve on in-kind liabilities paid		81			140
Internet realized loss on funding in SUI offered to pay Sponsor Payment		(7,436	)		(9,266	)
Internet realized loss on funding in SUI offered for redemptions		(1,160,477	)		(1,419,555	)
Internet realized loss on funding in SUI offered for distributions		(16,498	)		(16,498	)
Internet change in unrealized appreciation on Sponsor Payment payable		1,616			1,911
Internet change in unrealized depreciation on funding in SUI		(2,203,432	)		(10,568,444	)
Internet realized and alter in unrealized loss		(3,386,146	)		(12,011,712	)
Internet lower in web belongings ensuing from operations	$	(3,362,720	)	$	(11,975,488	)

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

The
accompanying notes are an integral a part of the monetary statements.

21SHARES
SUI ETF

STATEMENTS
OF CHANGES IN NET ASSETS

	Three Months Ended June 30, 2026^*			November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*
	(Unaudited)			(Unaudited)

Internet belongings, starting of interval	$	15,092,444		$	–
Contributions for Shares issued		3,074,260			27,171,163
Distributions for Shares redeemed		(2,113,025	)		(2,504,716	)
Earnings distributions		(53,101	)		(53,101	)
Internet funding earnings		23,426			36,224
Internet realized achieve on in-kind liabilities paid		81			140
Internet realized loss on funding in SUI offered to pay Sponsor Payment		(7,436	)		(9,266	)
Internet realized loss on funding in SUI offered for redemptions		(1,160,477	)		(1,419,555	)
Internet realized loss on funding in SUI offered for distributions		(16,498	)		(16,498	)
Internet change in unrealized appreciation on Sponsor Payment payable		1,616			1,911
Internet change in unrealized depreciation on funding in SUI		(2,203,432	)		(10,568,444	)
Internet belongings, finish of interval	$	12,637,858		$	12,637,858

Shares issued and redeemed
Shares issued		170,000			1,050,000	#
Shares redeemed		(120,000	)		(140,000	)#
Internet enhance in Shares issued		50,000			910,000	#

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

#	On February 22, 2026, there was a 2-for-1 reverse share break up – See Observe 1. Historic shares excellent and web asset worth per share have been adjusted to replicate the 2-for-1 reverse share break up on a retroactive foundation.

The
accompanying notes are an integral a part of the monetary statements.

21Shares
Sui ETF

Notes
to Monetary Statements (Unaudited)

The
21Shares Sui ETF (the “Belief”) is a Delaware statutory belief, shaped on January 7, 2025, pursuant to the Delaware Statutory
Belief Act (“DSTA”). The Belief was initially registered with the title of Jura Pentium Belief 5. The Belief modified its title
from Jura Pentium Belief 5 to 21Shares Sui ETF on April 23, 2025. The Belief operates pursuant to an Amended and Restated Belief Settlement
(the “Belief Settlement”). CSC Delaware Belief Firm, a Delaware belief firm, is the trustee of the Belief (the “Trustee”).
The Belief is managed and managed by 21Shares US LLC (the “Sponsor”). The Sponsor is a restricted legal responsibility firm shaped
within the state of Delaware on June 16, 2021, and is an entirely owned subsidiary of 21co Holdings Restricted. The last word mother or father firm of
21co Holdings Restricted is FalconX Holdings Restricted (“FalconX”). Coinbase Custody Belief Firm, LLC (“Coinbase”),
Anchorage Digital Financial institution N.A. (“Anchorage”), and BitGo Financial institution & Belief, N.A. (“BitGo” and along with Coinbase
and Anchorage, because the context might require, the “SUI Custodians”, “Custodians” and every a “SUI Custodian”)
are the custodians for the Belief and maintain all the Belief’s SUI on the Belief’s behalf. The switch agent (the “Switch
Agent”), the administrator for the Belief (the “Administrator”), and the money custodian (the “Money Custodian”),
is Financial institution of New York Mellon. Previous to the Shares being listed on the Change, NAV Consulting, Inc. was the administrator of the Belief.

The
Belief is an exchange-traded fund that points shares of useful curiosity (the “Shares”) representing fractional undivided
useful pursuits in its web belongings that commerce on the Nasdaq Inventory Market LLC (the “Change”). The Shares are listed
for buying and selling on the Change underneath the ticker image “TSUI”.

The Belief’s funding
goal is to hunt to trace the efficiency of SUI, as measured by the efficiency of the CME CF Sui – Greenback Reference Fee—New
York Variant (the “Pricing Benchmark”), adjusted for the Belief’s bills and different liabilities, and to replicate rewards
from staking a portion of the Belief’s SUI, to the extent the Sponsor in its sole discretion determines that the Belief might achieve this
with out undue authorized or regulatory threat, equivalent to, with out limitation, the chance of jeopardizing the Belief’s skill to qualify as
a grantor belief for tax functions. CF Benchmarks Ltd. is the administrator for the Pricing Benchmark (the “Pricing Benchmark Supplier”).
The Pricing Benchmark is designed to trace the efficiency of SUI in U.S. {dollars}. In looking for to attain its funding goal, the
Belief holds SUI at its Custodians and the Administrator values the Shares each day as of 4:00 p.m. ET based mostly on the Pricing Benchmark.
On June 30, 2026, the Sponsor offered discover to the Pricing Benchmark Supplier of the termination, efficient August 31, 2026, of the
licensing settlement between the Sponsor and the Pricing Benchmark Supplier referring to using the Pricing Benchmark. The Sponsor intends
to enter right into a licensing settlement with FTSE Worldwide Restricted (“FTSE”) on or about August 24, 2026, whereby FTSE will
present every of the Sponsor, the Belief, and their associates a non-exclusive, non-transferable, non-sub-licensable, worldwide license
to entry, view and use FTSE index information to develop, create, calculate, settle, preserve or help and market the Belief. Accordingly,
the change in pricing benchmark supplier will not be anticipated to have a cloth impression on the Belief’s web asset worth, the truthful worth measurement
of the Belief’s SUI, or the Belief’s outcomes of operations, and doesn’t signify a change in accounting precept. The change can be
utilized prospectively from the date the successor benchmark turns into efficient.

The
Belief is an “rising progress firm” as that time period is used within the Securities Act, and, as such, the Belief might elect to conform
with sure decreased public firm reporting necessities.

Pursuant
to a subscription settlement, on November 18, 2025, the Sui Basis, a Cayman Islands basis firm, bought from the Belief
1,000,000 (500,000 Shares as retroactively adjusted for the Share Break up) Shares for an combination buy value of 10,000,000 SUI tokens.

On
February 22, 2026, the Sponsor authorised a two (2) -for- one (1) reverse share break up (the “Share Break up”) of all the Belief’s
excellent Shares. In reference to the Share Break up, each two Shares that had been held by the Belief’s useful homeowners had been mechanically
transformed into one Share.

On February 23, 2026, the
Sponsor, in its capability as seed capital investor (the “Seed Capital Investor”), topic to circumstances, bought 20,000 Shares
(the “Seed Creation Baskets”) at a per-Share value of $17.43. Complete proceeds to the Belief from the sale of the Seed Creation
Baskets had been $348,574. Supply of the Seed Creation Baskets was made on February 24, 2026. On February 24, the Belief bought SUI with
the proceeds of the Seed Creation Baskets by transacting with a delegated third social gathering, who could also be an Approved Participant or an affiliate
of an Approved Participant, and with whom the Sponsor has entered into an settlement on behalf of the Belief (every such third social gathering, a
“SUI Counterparty”) to accumulate SUI on behalf of the Belief in change for money offered by the Sponsor in its capability as
Seed Capital Investor. All SUI acquired in reference to the Seed Creation Baskets is held by a number of of the SUI Custodians.

On March 4, 2026, the Seed
Creation Baskets, comprising 20,000 Shares, bought by the Sponsor on February 23, 2026, had been redeemed.

The
assertion of belongings and liabilities and schedule of funding on June 30, 2026, and the statements of operations and modifications in web
belongings for the three months ended June 30, 2026 and for the interval from November 18, 2025 (date of preliminary seeding) by way of June 30,
2026, have been ready on behalf of the Belief and are unaudited. Within the opinion of administration of the Sponsor of the Belief, all changes
(which embody regular recurring changes) essential to current pretty the monetary place and outcomes of operations for the three
months ended June 30, 2026 and for the interval from November 18, 2025 (date of preliminary seeding) by way of June 30, 2026, and for all interim
intervals introduced have been made. As well as, interim interval outcomes are usually not essentially indicative of outcomes for a full-year interval.

The
fiscal year-end of the Belief is September 30^th.

Vital
Accounting Insurance policies

Foundation
of Accounting

Sui Introduces Agent Wallets to Enhance Token Liquidity

September 10, 2026

Hong Kong, Macao students interact with Shenzhou-23 crew from orbit during “Tiangong Class”-Xinhua

September 10, 2026

The
monetary statements have been ready in accordance with accounting ideas typically accepted in america of America (“US
GAAP” or “GAAP”).

The
Belief qualifies as an funding firm solely for accounting functions and never for another objective and follows the accounting and
reporting steerage underneath the Monetary Accounting Requirements Board (“FASB”) Accounting Requirements Codification (“ASC”)
Subject 946, Monetary Providers – Funding Firms, however will not be registered, and isn’t required to be registered, as an funding firm
underneath the Funding Firm Act of 1940, as amended (the “1940 Act”). The Belief makes use of truthful worth as its technique of accounting
in accordance with its classification as an funding firm for accounting functions.

As
an funding firm for accounting functions, the Belief is exempt from the requirement to current an announcement of money flows pursuant
to ASC Subject 230, Assertion of Money Flows. Accordingly, an announcement of money flows has not been introduced.

Accounting
Estimates

The
preparation of the monetary statements in conformity with US GAAP requires the Belief to make estimates and assumptions that have an effect on the
reported quantities of belongings and liabilities on the date of the monetary statements and the reported quantities of revenues and bills
in the course of the reporting interval. Precise outcomes might differ materially from such estimates as extra info turns into accessible or
precise quantities might grow to be determinable. Ought to precise outcomes differ from these beforehand acknowledged, the recorded estimates can be
revised accordingly with the impression mirrored within the working outcomes of the Belief within the reporting interval during which they grow to be recognized.

Money

Money
contains non-interest bearing, non-restricted money maintained with one monetary establishment that doesn’t exceed U.S. federally insured
limits.

Funding
Valuation

US
GAAP defines truthful worth as the worth the Belief would obtain to promote an asset or pay to switch a legal responsibility in an orderly transaction
between market members on the measurement date. The Belief’s coverage is to worth investments held at truthful worth.

The
Belief identifies and determines the SUI principal market (or within the absence of a principal market, probably the most advantageous market) for
GAAP functions according to the applying of the truthful worth measurement framework in FASB ASC 820 – Truthful Worth Measurement.
A principal market is the market with the best quantity and exercise degree for the asset or legal responsibility. The dedication of the principal
market can be based mostly in the marketplace with the best quantity and degree of exercise that may be accessed. The Belief obtains related quantity
and degree of exercise info and based mostly on preliminary evaluation will choose an change market because the Belief’s principal market.
The web asset worth (“NAV”) and NAV per Share can be calculated utilizing the truthful worth of SUI based mostly on the worth offered
by this change market, as of 4:00 p.m. ET on the measurement date for GAAP functions. The Belief will replace its principal market evaluation
periodically and as wanted to the extent that occasions have occurred, or actions have modified in a way that would change the Sponsor’s
dedication of the Belief’s principal market.

Varied
inputs are utilized in figuring out the truthful worth of belongings and liabilities. Inputs could also be based mostly on unbiased market information (“observable
inputs”) or they could be internally developed (“unobservable inputs”). These inputs are categorized right into a disclosure
hierarchy consisting of three broad ranges for monetary reporting functions. The extent of a worth decided for an asset or legal responsibility
throughout the truthful worth hierarchy relies on the bottom degree of any enter that’s important to the truthful worth measurement in its entirety.
The three ranges of the truthful worth hierarchy are as follows:

Degree
1: Unadjusted quoted costs in lively markets for an identical belongings or liabilities;

Degree
2: Inputs apart from quoted costs included inside Degree 1 which are observable for the asset or legal responsibility both instantly or not directly,
together with quoted costs for comparable belongings or liabilities in lively markets, quoted costs for an identical or comparable belongings or liabilities
in markets that aren’t thought of to be lively, inputs apart from quoted costs which are observable for the asset or legal responsibility, and
inputs which are derived principally from or corroborated by observable market information by correlation or different means; and

Degree
3: Unobservable inputs, together with the Belief’s assumptions utilized in figuring out the truthful worth of investments, the place there’s little
or no market exercise for the asset or legal responsibility on the measurement date.

The
following desk presents details about the Belief’s belongings measured at truthful worth as of June 30, 2026 (Unaudited):

Quantity
at

Truthful
Worth Measurement Utilizing

Truthful
Worth

Degree
1

Degree
2

Degree
3

June 30, 2026^*
(Unaudited)

Belongings

Funding in
SUI

12,638,703

–

No
comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

The
value foundation of the funding in SUI recorded by the Belief for monetary reporting functions is the truthful worth of SUI on the time of buy.
The price foundation recorded by the Belief might differ from proceeds collected by the Approved Participant from the sale of the corresponding
Shares to traders.

Funding
Transactions

The
Belief considers funding transactions to be the receipt of SUI for Share creations and the supply of SUI for Share redemptions or
for fee of bills in SUI. The Belief information its funding transactions on a commerce date foundation and modifications in truthful worth are mirrored
as web change in unrealized appreciation or depreciation on investments and the online change in unrealized appreciation or depreciation
on Sponsor Payment payable. Realized positive aspects and losses are calculated utilizing the particular identification technique. Realized positive aspects and losses
are acknowledged in reference to transactions together with redemption of shares and settling obligations for the Sponsor Payment and the in-kind
liabilities paid in connection to the Sponsor Payment in SUI.

The
Belief earns staking rewards by delegating a portion of its SUI on the Sui Community’s proof-of-stake consensus protocol. The Sponsor
has entered right into a contractual association with Coinbase Crypto Providers, LLC (“Coinbase Crypto” or the “Staking Providers
Supplier”) to facilitate the staking of the Belief’s SUI. Every Staking Providers Supplier that generates staking rewards is
entitled to compensation decided as a portion of the staking rewards, which is usually decided by a low single-digit proportion
of the general rewards quantity (the “Staking Supplier Consideration”). Staking rewards signify variable consideration based mostly
on quite a lot of elements equivalent to the quantity of the SUI holdings the Belief has made accessible to the community, the staking yield, and different
elements, for its contribution to the community. The Belief retains management of its SUI all through the staking course of. The delegation of
SUI for staking functions doesn’t represent a sale, switch, or different derecognition occasion, as management of the SUI will not be transferred
to the validator or Staking Providers Supplier. Staking rewards are recorded as staking earnings acknowledged at truthful worth when earned. As a result of
the Belief will not be the principal to the block validation service, it doesn’t management the total output of the reward-generating exercise,
and as a substitute receives web staking rewards, after the Staking Supplier Consideration is deducted (“Staking Rewards”). The rewards
owed or paid to the Staking Providers Supplier scale back the quantity of staking rewards which are generated from the Belief’s staking
actions (“Staking Actions”) which are accessible within the belongings of the Belief. As such, the Belief presents staking rewards
on a web foundation, reflecting solely the portion of protocol rewards to which it’s entitled. Staking Rewards are acquired usually each day
on the SUI Custodians’ accounts, as earned. The unbonding interval for staked SUI can differ topic to the discretion of the Sponsor’s
request to unstake such belongings. The Belief’s staked SUI is unable to be moved on the blockchain or traded throughout this era.

The Belief acknowledges staking
rewards as income in accordance with ASC Subject 606, Income from Contracts with Prospects (“ASC 606”). Beneath the staking
preparations, the validator (e.g., the Custodian or different staking supplier) is taken into account the client, because it receives entry to the Belief’s
staking capability (i.e., the delegation of SUI), which represents the Belief’s efficiency obligation. In change, the Belief is entitled
to staking rewards generated by the Sui protocol, web of validator charges. Staking rewards signify variable consideration, as the quantity
of rewards will not be recognized till the relevant validation actions are accomplished, and the Belief receives rewards in its custodial account.
The contract time period is the size of every staking epoch. Staking rewards are acknowledged as income when the Belief satisfies its efficiency
obligations. Staking rewards are acquired in SUI, which represents non-cash consideration. Non-cash consideration is measured at truthful
worth on the inception of every contract, in accordance with ASC 606.

Non permanent
lock-up intervals or switch restrictions from staking may restrict the Belief’s skill to satisfy redemptions. For the three months
ended June 30, 2026, the Belief staked a median of 95.74% of its SUI holdings every day. For the interval from February 24, 2026
(graduation of funding operations) by way of June 30, 2026, the Belief staked a median of 94.06% of its SUI holdings every day.
As of June 30, 2026, the Belief had staked 94.75% of its SUI holdings. The staked proportion as of any explicit date, together with on the
finish of a reporting interval, might differ from the quarterly common.

The
Sponsor Payment payable is settled in SUI. The legal responsibility is remeasured at every reporting date by reference to the truthful worth of the SUI required
to settle it, with the impact of remeasurement acknowledged in web change in unrealized appreciation (depreciation) on the Sponsor Payment
payable. On settlement, the distinction between the carrying quantity of the legal responsibility and the price foundation of the SUI delivered is acknowledged
in web realized achieve (loss) on in-kind liabilities paid.

Distributions
to Shareholders

The
Belief pays money distributions to Shareholders no less than quarterly. Distributions are funded from staking rewards earned on the Belief’s
SUI holdings. Staking Rewards are acknowledged as earnings by the Belief every day as they accrue and are mirrored within the Belief’s
NAV previous to distribution.

Distributions
to Shareholders are recorded on the ex-dividend date, which additionally serves because the document date. Shareholders of document as of the ex-dividend
date are entitled to obtain distributions paid on the relevant fee date. The quantity of every distribution relies on the staking
rewards really earned by the Belief in the course of the related interval, web of the Staking Supplier Consideration and the Staking Payment (as outlined
beneath). Distributions are mirrored as a discount of web belongings as of the ex-dividend date.

The
tax character of distributions is set yearly in accordance with U.S. federal earnings tax ideas, which can differ from the
remedy of such quantities for GAAP functions. Any variations between the tax and ebook distributable quantities are reclassified throughout the
parts of web belongings at year-end.

Through the three months ended
June 30, 2026, the Belief made money distributions to shareholders derived from a portion of the SUI acquired as Staking Rewards from the
Belief’s Staking Actions, together with $38,057.46, or $0.048174 per Share, on Might 14, 2026 and $15,043.21, or $0.016531 per Share
on June 29, 2026, for combination distributions of $53,100.67 or $0.064705 per Share. The distributions decreased the Belief’s SUI holdings
by way of the sale of SUI to generate money.

Calculation
of NAV and NAV per Share

On
every day apart from when the Change is closed for normal buying and selling (a “Enterprise Day”), as quickly as practicable after 4:00
p.m. ET, the NAV of the Belief is obtained by subtracting all accrued charges, bills and different liabilities of the Belief from the truthful
worth of the SUI and different belongings held by the Belief based mostly on the Pricing Benchmark value. The Administrator computes the NAV per Share
by dividing the NAV of the Belief by the variety of Shares excellent on the date the computation is made.

Federal
Earnings Taxes

The
Sponsor and the Trustee will deal with the Belief as a “grantor belief” for U.S. federal earnings tax functions. As a grantor belief,
the Belief can undertake solely sure forms of actions. For instance, typically, the Belief can’t differ its funding portfolio to take
benefit of market fluctuations. The Belief might obtain earnings from funding actions that don’t require such decision-making. If
staking is handled for U.S. federal earnings tax functions as a passive ministerial and administrative exercise, it needs to be permissible
for the Belief. To that finish, on November 10, 2025, the Treasury Division and IRS issued a income process that offered a secure harbor
for trusts that in any other case qualify as funding trusts and as grantor trusts to stake their digital belongings with out jeopardizing their
tax standing as funding trusts and grantor trusts for U.S. federal earnings tax functions. The income process offers particular necessities
that should be glad by a Belief in an effort to be eligible to depend on the secure harbor. The Belief intends to function so that it’s going to qualify
to be handled for U.S. federal earnings tax functions as a grantor belief.

As a result of
the remedy of staking in a grantor belief, together with interpretation of the necessities underneath the secure harbor, continues to be creating,
there stays a threat of hostile regulatory or authorized determinations that would have an effect on the tax remedy of the Belief as a grantor belief
or have an effect on the Belief’s operations.

Every
useful proprietor of Shares can be handled as instantly proudly owning its professional rata Share of the Belief’s belongings and can be handled as if
it instantly acquired a professional rata portion of the Belief’s earnings, achieve, losses and deductions. If the Belief sells SUI (for instance,
to pay charges or bills), such a sale is a taxable occasion to shareholders of the Belief (“Shareholders”). Upon a Shareholder’s
sale of its Shares, the Shareholder can be handled as having offered the professional rata share of the SUI held within the Belief on the time of the
sale and acknowledges achieve or loss on such sale.

The Sponsor has reviewed the tax positions as of June 30, 2026, and has decided that
no provision for earnings tax is required within the Belief’s monetary statements.

Section
Reporting

The
Belief operates in a single section. The section derives its revenues from Belief investments made in accordance with the outlined funding
technique of the Belief, as prescribed within the Belief’s prospectus. The Chief Working Determination Maker (“CODM”) is the
Chief Government Officer of the Sponsor. The CODM displays the working outcomes of the Belief. The monetary info that the CODM
leverages to evaluate the section’s efficiency and to make selections for the Belief’s single section is according to the
monetary info that’s introduced throughout the Belief’s monetary statements. Section belongings are mirrored on the accompanying
Assertion of Belongings and Liabilities as Complete belongings and the one important section bills, the Sponsor Payment and the Staking Payment, are
included within the accompanying Statements of Operations.

The
following represents the modifications in amount of SUI and the truthful worth in the course of the three months ended June 30, 2026 (Unaudited):

	Amount of SUI			Truthful Worth
Starting stability as of April 1, 2026		17,213,810.1127		$	15,093,069
SUI bought for money contributions		3,400,181.2116			3,074,260
SUI rewards acquired (web of Staking Supplier Consideration)		51,506.7574			46,205
SUI offered for money redemptions		(2,402,371.4820	)		(2,113,025	)
SUI offered to pay bills		(24,876.8434	)		(20,862	)
SUI offered for distributions		(53,065.5418	)		(53,101	)
Internet realized loss on funding in SUI offered to pay Sponsor Payment		–			(7,436	)
Internet realized loss on funding in SUI offered for redemptions		–			(1,160,477	)
Internet realized loss on funding in SUI offered for distributions		–			(16,498	)
Internet change in unrealized depreciation on funding in SUI		–			(2,203,432	)
Ending stability as of June 30, 2026^*		18,185,184.2145		$	12,638,703

The
following represents the modifications in amount of SUI and the truthful worth in the course of the interval from November 18, 2025 (date of preliminary seeding)
by way of June 30, 2026 (Unaudited):

	Amount of SUI			Truthful Worth
Starting stability as of November 18, 2025 (date of preliminary seeding)		–		$	–
SUI bought for money contributions		20,999,928.3089			27,171,163
SUI rewards acquired (web of Staking Supplier Consideration)		75,017.4390			68,696
SUI offered for money redemptions		(2,802,341.9465	)		(2,504,716	)
SUI offered to pay bills		(34,354.0451	)		(29,576	)
SUI offered for distributions		(53,065.5418	)		(53,101	)
Internet realized loss on funding in SUI offered to pay Sponsor Payment		–			(9,266	)
Internet realized loss on funding in SUI offered for redemptions		–			(1,419,555	)
Internet realized loss on funding in SUI offered for distributions		–			(16,498	)
Internet change in unrealized depreciation on funding in SUI		–			(10,568,444	)
Ending stability as of June 30, 2026^*		18,185,184.2145		$	12,638,703

*	No comparative info has been offered as that is the primary fiscal yr of the Belief’s operations.

The Sponsor Payment accrues each day
and is payable in SUI weekly in arrears. The Administrator calculates the Sponsor Payment every day by making use of an annualized price
to the Belief’s NAV, and the quantity of SUI payable in respect of every each day accrual is set by reference to the Pricing Benchmark.
The Sponsor has agreed to pay all working bills (aside from litigation bills and different extraordinary bills) out of the Sponsor
Payment. The Belief incurred Sponsor Payment for the three months ended June 30, 2026 and for the interval from November 18, 2025 (date of preliminary
seeding) by way of June 30, 2026, of $11,228 and $15,298, respectively. The accrued legal responsibility as of June 30, 2026, was $845.

As
partial consideration for receipt of the Sponsor Payment, the Sponsor shall assume and pay all charges and different bills incurred by the Belief
within the unusual course of its affairs, excluding taxes, however together with (i) the payment payable to the advertising and marketing agent for companies it offers
to the Belief (the “Advertising Payment”), (ii) charges to the Administrator, if any, (iii) charges to the SUI Custodians, (iv) charges to
the Switch Agent, (v) charges to the Trustee, (vi) the charges and bills associated to any future itemizing, buying and selling or citation of the Shares
on any itemizing change or citation system (together with authorized, advertising and marketing and audit charges and bills), (vii) unusual course authorized charges
and bills however not litigation-related bills, (viii) audit charges, (ix) regulatory charges, together with, if relevant, any charges relating
to the registration of the Shares underneath the Securities Act or the Securities Change Act of 1934, as amended (the “Change Act”),
(x) printing and mailing prices, (xi) prices of sustaining the Sponsor’s web site and (xii) relevant license charges (every, a “Sponsor-paid
Expense,” and collectively, the “Sponsor-paid Bills”), offered that any expense that qualifies as an Further Belief
Expense can be deemed to be an Further Belief Expense and never a Sponsor-paid Expense. There’s at the moment no predetermined cap on the
combination quantity of Sponsor-paid bills. Ought to the Belief implement a predetermined cap on combination Sponsor-paid bills, the Belief
will notify the homeowners of the useful pursuits of Shares in a prospectus complement or in its periodic Change Act reports, as relevant.

The
Sponsor won’t, nevertheless, assume sure extraordinary, non-recurring bills that aren’t Sponsor-paid Bills, together with, however not
restricted to, taxes and governmental fees, bills and prices of any extraordinary companies carried out by the Sponsor (or another service
supplier) on behalf of the Belief to guard the Belief or the pursuits of Shareholders, any indemnification of the Custodians, Administrator
or different brokers, service suppliers or counter-parties of the Belief, the charges and bills associated to the itemizing of Shares on the Change,
and extraordinary authorized charges and bills, together with any authorized charges and bills incurred in reference to litigation, regulatory enforcement
or investigation issues (collectively, “Further Belief Bills”). Of the Sponsor-paid Bills, unusual course authorized
charges and bills shall be topic to a cap of $100,000 each year. Within the Sponsor’s sole discretion, all or any portion of a Sponsor-paid
Expense could also be re-designated as an Further Belief Expense if, amongst different causes, the Sponsor determines {that a} Sponsor-paid Expense
is a rare, non-recurring expense of the Belief. Ought to such a change happen, the Belief will notify the homeowners of the useful
pursuits of Shares in a prospectus complement or in its periodic Change Act reports, as relevant. Pursuant to the Belief Settlement,
the Sponsor or its delegates will direct the SUI Custodians to switch SUI from the Belief’s Chilly Vault Stability as wanted to pay
the Sponsor Payment and Further Belief Bills, if any. The Sponsor or its delegates will endeavor to switch the smallest quantity of
SUI wanted to pay relevant bills. The Belief shall not be answerable for paying any charges or bills related to the switch
of SUI as wanted to pay the Sponsor Payment or Further Belief Bills.

In
consideration for the Sponsor’s facilitation of staking, the Belief pays 25% of the staking rewards generated by the Belief’s
Staking Actions after deduction of the Staking Supplier Consideration to the Sponsor (“Staking Payment”). The Staking Payment
is accrued in SUI and transformed to U.S. {Dollars} by reference to the Pricing Benchmark and is payable in SUI weekly in arrears. The Belief
incurred Staking Payment for the three months ended June 30, 2026 and for the interval from November 18, 2025 (date of preliminary seeding) by way of
June 30, 2026, of $11,551 and $17,174, respectively.

To
the extent that the Sponsor doesn’t voluntarily assume bills, they would be the accountability of the Belief. The Sponsor additionally pays
the prices of the Belief’s group and providing. The Belief will not be obligated to repay any such prices associated to the Belief’s
group and providing paid by the Sponsor.

Creation
and Redemption of Shares

The Belief creates and redeems
Shares on a steady foundation however solely in blocks consisting of 10,000 Shares (“Creation Baskets”) or multiples thereof on the
NAV on the date of the creation or redemption. Solely Approved Individuals, that are registered broker-dealers who’ve entered into
written agreements with the Sponsor and the Administrator, can place orders.

Approved
Individuals might buy Shares in money by depositing money within the Belief’s account with the Money Custodian. This can trigger the
Sponsor, on behalf of the Belief, to mechanically instruct a SUI Counterparty to (i) buy the quantity of SUI equal in worth to
the money deposit quantity related to the order and (ii) deposit the ensuing SUI quantity within the Belief’s accounts with the Custodians,
ensuing within the Switch Agent crediting the relevant quantity of Shares to an Approved Participant. Approved Individuals may
buy Shares in-kind. To buy Shares in-kind, an Approved Participant delivers, or arranges for the supply by such Approved
Participant’s designee of, SUI to the Belief’s accounts with a SUI Custodian in change for Shares.

When
such an Approved Participant redeems its Shares in money, the Sponsor, on behalf of the Belief will direct a SUI Custodian to switch
SUI to a SUI Counterparty, who will promote the SUI to be executed, within the Sponsor’s affordable efforts, on the Pricing Benchmark
value used to calculate the Belief’s NAV, bearing in mind any unfold, commissions, or different buying and selling prices and deposit the money
proceeds of such sale within the Belief’s account with the Money Custodian for settlement with the Approved Participant. Any slippage
incurred (together with, however not restricted to, any buying and selling charges, spreads, or commissions), on a money equal foundation, would be the accountability
of the Approved Participant and never of the Belief or Sponsor. Approved Individuals may redeem Shares in-kind. When such an Approved
Participant redeems Shares in-kind, the Belief, by way of a SUI Custodian, will ship SUI to the Approved Participant or its designee
in change for Shares.

On November 18, 2025, pursuant
to a subscription settlement, the Belief offered to the Sui Basis 1,000,000 (500,000 Shares as retroactively adjusted for the Share Break up)
Shares for an combination buy value of 10,000,000 SUI tokens (such date, the “Sui Basis Closing”). For a interval of
one yr from the sooner of (i) the Sui Basis Closing and (ii) the date that the registration assertion of which this report varieties
a part of is asserted efficient by the SEC (such interval, the “Lock-Up Interval”), the Sui Basis has agreed that it shall
not, with out the prior written consent of the Sponsor, promote, switch, assign, pledge, hypothecate or in any other case eliminate any of the
Shares it holds, nor will the Sui Basis search to have the Belief or the Sponsor redeem its Shares in the course of the Lock-Up Interval. Following
expiration of the Lock-Up Interval, the Sui Basis might, to the extent permitted by relevant legal guidelines, be permitted to redeem Shares in
accordance with the Belief Settlement.

	Three Months Ended June 30, 2026^*			November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*
	(Unaudited)			(Unaudited)
Exercise in Capital Shares:
Shares issued		170,000			1,050,000	#
Shares redeemed		(120,000	)		(140,000	)#
Internet change in Capital Shares		50,000			910,000	#

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

#	On February 22, 2026, the Share Break up occurred. Historic shares excellent and NAV per share have been adjusted to replicate the Share Break up on a retroactive foundation.

	Three Months Ended June 30, 2026^*			November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*
	(Unaudited)			(Unaudited)
Exercise in Capital Transactions:
Contributions for Shares issued	$	3,074,260		$	27,171,163
Distributions for Shares redeemed		(2,113,025	)		(2,504,716	)
Internet change in Capital Transactions	$	961,235		$	24,666,447

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

SUI
bought payable represents the amount of SUI bought for the creation of Shares or Staking Rewards the place the SUI has not but settled.
Usually, SUI is transferred inside two Enterprise Days of the commerce date.

		June 30, 2026^*
		(Unaudited)
SUI bought payable	$	–

SUI
offered receivable represents the amount of SUI offered for the redemption of Shares the place the SUI has not but been settled. Usually, SUI
is transferred inside two Enterprise Days of the commerce date.

		June 30, 2026^*
		(Unaudited)
SUI offered receivable	$	–

No
comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

The
Sponsor is a associated social gathering to the Belief. The Belief’s operations are supported by its Sponsor, who’s in flip supported by its mother or father
firm and affiliated firms and exterior service suppliers.

On
February 23, 2026, the Sponsor, in its capability because the Seed Capital Investor, topic to circumstances, bought the Seed Creation Baskets
comprising 20,000 Shares at a per-Share value of $17.43. Complete proceeds to the Belief from the sale of the Seed Creation Baskets had been
$348,574. Supply of the Seed Creation Baskets was made on February 24, 2026. These Seed Creation Baskets had been redeemed for money on
March 4, 2026.

As
of June 30, 2026, the Sponsor didn’t personal any Shares of the Belief.

The
Sponsor organized for the creation of the Belief and is answerable for the continued registration of the Shares for his or her public providing
in america and the itemizing of Shares on the Change.

Monetary
Highlights*

Per Share Efficiency (for a Share excellent all through every interval introduced)	Three Months Ended June 30, 2026^*			November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*
	(Unaudited)			(Unaudited)

Internet asset worth per Share, starting of interval	$	17.55		$	33.72	^**
Internet funding earnings (loss)⁽¹⁾		0.03			0.04
Internet realized and alter in unrealized achieve (loss)⁽²⁾		(3.63	)		(19.81	)
Internet lower in web belongings from operations		(3.60	)		(19.77	)

Much less distributions from:
Internet funding earnings		(0.06	)		(0.06	)
Complete distributions		(0.06	)		(0.06	)

Internet asset worth per Share, finish of interval	$	13.89		$	13.89

Complete return, at web asset worth⁽³⁾		(20.60	)%		(58.68	)%

Ratio to common web belongings⁽⁴⁾
Internet funding earnings		0.63	%		0.41	%⁽⁵⁾
Gross bills		0.61	%		0.37	%⁽⁵⁾
Internet bills		0.61	%		0.37	%⁽⁵⁾

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

**	Represents the NAV per Share on November 18, 2025, date of preliminary seeding. On February 22, 2026, the Share Break up occurred. Historic Shares excellent and NAV per share have been adjusted to replicate the Share Break up on a retroactive foundation.

(1)	Calculated utilizing common Shares excellent technique.

(2)	The quantity proven for a Share excellent all through the interval might not agree with the change within the combination positive aspects and losses for such interval due to the timing of gross sales and repurchases of the Belief’s Shares in relation to fluctuating market worth for the Belief.

(3)	Complete return is calculated based mostly on the change within the worth in the course of the interval and isn’t annualized. A person shareholder’s complete return and ratio might differ from the above complete returns and ratios based mostly on the timing of contributions to and withdrawals from the Belief.

(4)	Annualized.

(5)	Calculated based mostly on common web belongings beginning on November 18, 2025, date of preliminary seeding.

Commitments
and Contingent Liabilities

In
the traditional course of enterprise, the Belief might enter into contracts that include quite a lot of normal indemnification clauses. The Belief’s
most publicity underneath these preparations is unknown as this may contain future claims which may be made in opposition to the Belief which have
not but occurred and can’t be predicted with any certainty. Nonetheless, the Sponsor believes the chance of loss underneath these preparations
to be distant.

Not like
different funds that will spend money on diversified belongings, the Belief’s funding technique is concentrated in a single asset inside a single
asset class. This focus maximizes the diploma of the Belief’s publicity to quite a lot of market dangers related to SUI and
digital belongings. By concentrating its funding technique solely in SUI, any losses suffered on account of a lower within the worth of
SUI could be anticipated to cut back the worth of an curiosity within the Belief and won’t be offset by different positive aspects if the Belief had been to speculate
in underlying belongings that had been diversified.

The
Sponsor won’t be liable to the Belief, the Trustee or any Shareholder for any motion taken or for refraining from taking any motion
in good religion, or for errors in judgment or for depreciation or loss incurred by cause of the sale of any SUI or different belongings of the
Belief. Nonetheless, the previous legal responsibility exclusion won’t shield the Sponsor in opposition to any legal responsibility ensuing from its personal gross negligence,
unhealthy religion, or willful misconduct.

The
Sponsor and every of its shareholders, members, administrators, officers, workers, associates, and subsidiaries can be indemnified by the
Belief and held innocent in opposition to any losses, liabilities or bills incurred within the efficiency of its duties underneath the Belief Settlement
with out gross negligence, unhealthy religion, or willful misconduct. The Sponsor might rely in good religion on any paper, order, discover, listing, affidavit,
receipt, analysis, opinion, endorsement, project, draft, or another doc of any form prima facie correctly executed and submitted
to it by the Trustee, the Trustee’s counsel or by another particular person for any issues arising underneath the Belief Settlement. The Sponsor
shall in no occasion be deemed to have assumed or incurred any legal responsibility, obligation, or obligation to any Shareholder or to the Trustee different
than as expressly offered for within the Belief Settlement. Such indemnity contains fee from the Belief of the prices and bills incurred
in defending in opposition to any indemnified declare or legal responsibility underneath the Belief Settlement.

The
Trustee won’t be liable or accountable to the Belief or another particular person or underneath any settlement to which the Belief or any collection of
the Belief is a celebration, aside from the Trustee’s breach of its obligations pursuant to the Belief Settlement or its personal willful misconduct,
unhealthy religion or gross negligence. The Trustee and every of the Trustee’s officers, associates, administrators, workers, and brokers will
be indemnified by the Belief from and in opposition to any losses, claims, taxes, damages, affordable bills, and liabilities incurred with respect
to the creation, operation or termination of the Belief, the execution, supply or efficiency of the Belief Settlement or the transactions
contemplated thereby; offered that the indemnified social gathering acted with out willful misconduct, unhealthy religion or gross negligence.

The Belief has evaluated all
subsequent occasions and transactions for potential recognition or disclosure by way of the issuance of the monetary statements and has famous
no occasions requiring adjustment or extra disclosure within the monetary statements.

Merchandise
2. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations

This
info needs to be learn along with the monetary statements and notes included in Merchandise 1 of Half I of this Type 10-Q. This
Type 10-Q comprises “forward-looking statements” throughout the which means of Part 27A of the Securities Act and Part 21E of
the Change Act, and such forward-looking statements contain dangers and uncertainties. All statements (apart from statements of
historic truth) included on this Type 10-Q that tackle actions, occasions or developments that will happen sooner or later, the Belief’s
operations, the Sponsor’s plans and references to the Belief’s future success and different comparable issues are forward-looking
statements. Phrases equivalent to “may,” “would,” “might,” “count on,” “intend,” “estimate,”
“predict,” and variations on such phrases or negatives thereof, and comparable expressions that replicate our present views with
respect to future occasions and Belief efficiency, are supposed to determine such forward-looking statements. These forward-looking statements
are solely predictions, topic to dangers and uncertainties which are troublesome to foretell and lots of of that are exterior of our management,
and precise outcomes may differ materially from these mentioned. Ahead-looking statements contain dangers and uncertainties that would
trigger precise outcomes or outcomes to vary materially from these expressed therein. We categorical our estimates, expectations, beliefs,
and projections in good religion and consider them to have an affordable foundation. Nonetheless, we make no assurances that administration’s estimates,
expectations, beliefs, or projections can be achieved or completed. These forward-looking statements are based mostly on assumptions about
many vital elements that would trigger precise outcomes to vary materially from these within the forward-looking statements. We don’t intend
to replace any forward-looking statements even when new info turns into accessible or different occasions happen sooner or later, besides as required
by the federal securities regulations.

Group
and Belief Overview

The
21Shares Sui ETF (the “Belief”) is a Delaware statutory belief, shaped on January 7, 2025, pursuant to the DSTA. The Belief
operates pursuant to the Belief Settlement. The Belief was initially registered with the title of Jura Pentium Belief 5. The Belief modified
its title from Jura Pentium Belief 5 to 21Shares Sui ETF on April 23, 2025. The Belief will not be registered as an funding firm underneath
the 1940 Act and isn’t a commodity pool for functions of the Commodity Change Act. The Belief is managed and managed by the Sponsor.
The Sponsor is a restricted legal responsibility firm shaped within the state of Delaware on June 16, 2021, and is an entirely owned subsidiary of 21co
Holdings Restricted. The last word mother or father firm of 21co Holdings Restricted is FalconX. The Sponsor will not be topic to regulation by the Commodity
Futures Buying and selling Fee as a commodity pool operator with respect to the Belief, or a commodity buying and selling advisor with respect to the
Belief. The Belief is an exchange-traded fund that points widespread shares of useful curiosity representing fractional undivided useful
pursuits in its web belongings that commerce on the Change. The Shares are listed for buying and selling on the Change underneath the ticker image “TSUI”.

The Belief’s funding
goal is to hunt to trace the efficiency of SUI, as measured by the efficiency of the CME CF Sui – Greenback Reference Fee—New
York Variant (the “Pricing Benchmark”), adjusted for the Belief’s bills and different liabilities, and to replicate rewards
from staking a portion of the Belief’s SUI, to the extent the Sponsor in its sole discretion determines that the Belief might achieve this
with out undue authorized or regulatory threat, equivalent to, with out limitation, the chance of jeopardizing the Belief’s skill to qualify as
a grantor belief for U.S. Federal earnings tax functions. In looking for to attain its funding goal, the Belief holds SUI and the Administrator
values the Shares each day as of 4:00 p.m. ET based mostly on the Pricing Benchmark. On June 30, 2026, the Sponsor offered discover to the Pricing
Benchmark Supplier of the termination, efficient August 31, 2026, of the licensing settlement between the Sponsor and the Pricing Benchmark
Supplier referring to using the Pricing Benchmark. The Sponsor intends to enter right into a licensing settlement with FTSE on or about August
24, 2026, whereby FTSE will present every of the Sponsor, the Belief, and their associates a non-exclusive, non-transferable, non-sub-licensable,
worldwide license to entry, view and use FTSE index information to develop, create, calculate, settle, preserve or help and market the Belief.
Accordingly, the change in pricing benchmark supplier will not be anticipated to have a cloth impression on the Belief’s web asset worth, the truthful
worth measurement of the Belief’s SUI, or the Belief’s outcomes of operations, and doesn’t signify a change in accounting precept. The
change can be utilized prospectively from the date the successor benchmark turns into efficient.

On
February 23, 2026, the Seed Capital Investor, topic to circumstances, bought the Seed Creation Baskets. Complete proceeds to the Belief
from the sale of the Seed Creation Baskets had been $348,574. Supply of the Seed Creation Baskets was made on February 24, 2026. These
Seed Creation Baskets had been redeemed for money on March 4, 2026.

The Belief points Shares solely in Creation Baskets of 10,000 or multiples
thereof. Creation Baskets are issued and redeemed in change for money or in-kind for SUI. Particular person Shares won’t be redeemed by the
Belief however are listed and traded on the Change underneath the ticker image “TSUI.” The Belief points Shares in Creation Baskets
on a steady foundation on the relevant NAV per Share on the creation order date.

The
Belief pays the unitary Sponsor payment of 0.30% of the Belief’s NAV (the “Sponsor Payment”). The Sponsor Payment is paid by the
Belief to the Sponsor as compensation for companies carried out underneath the Belief Settlement. The Belief incurred Sponsor Payment for the three months
ended June 30, 2026 and the interval from November 18, 2025 (date of preliminary seeding) by way of June 30, 2026 of $11,228 and $15,298, respectively.
The Sponsor Payment accrues each day and is payable in SUI weekly in arrears. The Administrator calculates the Sponsor Payment every day
by making use of an annualized price to the Belief’s NAV, and the quantity of SUI payable in respect of every each day accrual is set
by reference to the Pricing Benchmark. The Sponsor has agreed to pay all working bills (aside from litigation bills and different
extraordinary bills) out of the Sponsor Payment.

The
Belief is an “rising progress firm” as that time period is used within the Securities Act and, as such, the Belief might elect to conform
with sure decreased public firm reporting necessities.

Staking

The
Belief’s staking mannequin goals to maximise the portion of the Belief’s SUI accessible for staking whereas controlling for liquidity
and redemption dangers. The mannequin determines an optimum utilization price by balancing anticipated yield in opposition to potential prices (together with
borrowing prices throughout redemptions, assuming we’ve entry to acceptable credit score).

The
Staking Providers Supplier workout routines no discretion as to the quantity of the Belief’s SUI to be staked or the timing of the Belief’s
Staking Actions. Whereas the Belief might stake a most of 100% of its SUI holdings, the quantity of SUI that is still unstaked is set
based mostly on the Belief’s utilization price evaluation, and accordingly might differ every so often. Based mostly on utilization price evaluation
utilized to historic information, the Belief typically intends to stake between 70% and 90% of the SUI it holds, though the quantity of SUI
that’s staked could also be lesser or better every so often. The exact proportion to be staked relies on the estimated liquidity wants
of the Belief and different elements, as decided by the Sponsor.

The rewards owed or paid to the Staking Providers Supplier scale back the
quantity of SUI rewards which are generated from the Belief’s Staking Actions which are accessible within the belongings of the Belief. Every
Staking Providers Supplier that generates staking rewards is entitled to compensation decided as a portion of the staking rewards, which
is usually decided by a low single-digit proportion of the general rewards quantity (the “Staking Supplier Consideration”).
The Staking Supplier Consideration is paid on to the Staking Providers Supplier from the staking rewards or not directly by way of the
Custodians’ personal accounts. The Belief pays 25% of the staking rewards generated by the Belief’s Staking Actions after deduction
of the Staking Supplier Consideration to the Sponsor, and retains the rest.

The
Belief intends to pay money distributions no less than quarterly to Shareholders to distribute staking rewards earned by the Belief. The quantity
of any distribution, if any, will depend upon the staking rewards really earned by the Belief throughout every quarter and can’t be predicted
with certainty. The quantity of staking rewards earned will differ based mostly on elements together with, however not restricted to, the quantity of SUI held
by the Belief, the proportion of the Belief’s SUI that’s staked, community staking participation charges, protocol reward charges on the
Sui Community, and community circumstances. Accordingly, there could be no assurance as to the quantity of distributions that can be paid in any
quarter, and it’s doable that no distributions can be paid in a given quarter if inadequate staking rewards are earned.

Calculation
of NAV and NAV per Share

The
NAV of the Belief is utilized by the Belief in its day-to-day operations to measure the online worth of the Belief’s belongings. The NAV is calculated
on every Enterprise Day and is the same as the combination worth of the Belief’s belongings much less its liabilities based mostly on the Pricing Benchmark
value. In figuring out the NAV of the Belief on any Enterprise Day, the Administrator calculates the worth of the SUI held by the Belief as
of 4:00 p.m. ET on such day. The Administrator additionally calculates the “NAV per Share” of the Belief, which equals the NAV of
the Belief divided by the variety of excellent Shares.

In
addition to calculating NAV and NAV per Share, for functions of the Belief’s monetary statements, the Belief determines the online asset
worth of the Belief decided on a GAAP foundation (the “Principal Market NAV”) and web asset worth of the Belief per Share decided
on a GAAP foundation (the “Principal Market NAV per Share”) on every valuation date for such monetary statements. The dedication
of the Principal Market NAV and Principal Market NAV per Share is an identical to the calculation of NAV and NAV per Share, respectively,
besides that the worth of SUI is set utilizing the truthful worth of SUI based mostly on the worth within the SUI market that the Belief considers
its “principal market” as of 4:00 p.m. ET on the valuation date, quite than utilizing the Pricing Benchmark.

NAV
and NAV per Share are usually not measures calculated in accordance with GAAP and are usually not supposed as substitutes for Principal Market NAV and
Principal Market NAV per Share, respectively.

Essential
Accounting Estimates

The
monetary statements and accompanying notes are ready in accordance with GAAP. The preparation of those monetary statements depends
on estimates and assumptions that impression the Belief’s monetary place and outcomes of operations. These estimates and assumptions
have an effect on the Belief’s utility of accounting insurance policies. Beneath is a abstract of accounting insurance policies on money and funding valuation.
There have been no materials estimates involving a major degree of estimation uncertainty that had or are fairly prone to have had
a cloth impression on the Belief’s monetary situation used within the preparation of the monetary statements. As well as, please refer
to Observe 2 to the Monetary Statements included on this report for additional dialogue of the Belief’s accounting insurance policies.

Money

Money
contains non-interest bearing, non-restricted money maintained with one monetary establishment that doesn’t exceed U.S. federally insured
limits.

Funding
Valuation

The
Belief’s coverage is to worth investments held at truthful worth. The Belief follows the provisions of ASC 820, Truthful Worth Measurements
(“ASC 820”). ASC 820 offers steerage for figuring out truthful worth and requires elevated disclosure relating to the inputs
to valuation strategies used to measure truthful worth. ASC 820 determines truthful worth to be the worth that will be acquired for SUI in a
present sale, which assumes an exit value ensuing from an orderly transaction between market members on the measurement date.
ASC 820-10 requires the belief that SUI is offered in its principal market to market members (or within the absence of a principal
market, probably the most advantageous market).

The
Belief makes use of an change traded value from the Belief’s principal marketplace for SUI as of 4:00 p.m. ET on the Belief’s monetary
assertion measurement date.

Outcomes
of Operations

For
the Three Months Ended June 30, 2026^*

The Belief’s NAV decreased
from $15,092,444 on March 31, 2026 to $12,637,858 on June 30, 2026, a lower of 16.26%. The lower resulted primarily from a 20.45%
decline within the value of SUI, which fell from $0.88 on March 31, 2026 to $0.70 on June 30, 2026, partially offset by a web enhance in
Shares excellent from 860,000 on March 31, 2026 to 910,000 on June 30, 2026, reflecting 170,000 Shares (17 Creation Baskets) created
and 120,000 Shares (12 Creation Baskets) redeemed in the course of the quarter. The Belief had 94.75% of its SUI holdings staked as of June 30,
2026, with a median of 95.74% staked every day in the course of the quarter.

Internet lower in web belongings
ensuing from operations for the three months ended June 30, 2026 was $(3,362,720), consisting of a web change in unrealized depreciation
on funding in SUI of $(2,203,432), a web realized lack of $(1,160,477) on SUI offered for the redemption of Shares, a web realized loss
of $(7,436) on SUI offered to pay the Sponsor Payment, and a web realized lack of $(16,498) on SUI offered for distributions, partially offset by
web funding earnings of $23,426, a web realized achieve of $81 on in-kind liabilities paid, and a web change in unrealized appreciation
on the Sponsor Payment payable of $1,616. Internet funding earnings comprised Staking Rewards of $46,205, much less the Sponsor Payment of $11,228 and
the Staking Payment of $11,551. Along with web belongings ensuing from operations, the Belief paid complete staking earnings distributions of
$53,101 ($0.048174 per Share on Might 14, 2026 and $0.016531 per Share on June 29, 2026) to Shareholders in the course of the quarter. Aside from
the Sponsor Payment and the Staking Payment, the Belief had no different bills in the course of the three months ended June 30, 2026.

No
comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

For
the interval from November 18, 2025 (date of preliminary seeding) by way of June 30, 2026^*

The
Belief commenced operations on November 18, 2025 when the Sui Basis, a Cayman Islands basis firm, bought 500,000 Shares
(as retroactively adjusted to replicate the 2-for-1 reverse share break up efficient February 22, 2026) for an combination buy value of
10,000,000 SUI tokens at a NAV per Share of $33.72. The value of SUI declined 58.58% from $1.69 on November 18, 2025 to $0.70 on June
30, 2026, leading to a NAV per Share lower from $33.72 to $13.89, a decline of 58.81%.

Internet lower in web belongings
ensuing from operations for the interval was $(11,975,488), ensuing from a web change in unrealized depreciation on funding in SUI
of $(10,568,444), a web realized lack of $(1,419,555) from SUI offered for redemptions, a web realized lack of $(9,266) from SUI offered to
pay the Sponsor Payment, and a web realized lack of $(16,498) from SUI offered for distributions, partially offset by web funding earnings of
$36,224, a web realized achieve of $140 on in-kind liabilities paid, and a web change in unrealized appreciation on Sponsor Payment payable of
$1,911. Internet funding earnings comprised Staking Rewards of $68,696, much less the Sponsor Payment of $15,298 and the Staking Payment of $17,174. Besides
for the Sponsor Payment and Staking Payment, the Belief had no different bills in the course of the interval.

*	No comparative assertion has been offered as that is the primary fiscal yr of the Belief’s operations.

Liquidity
and Capital Sources

The
Belief will not be conscious of any tendencies, calls for, commitments, occasions, or uncertainties which are fairly prone to lead to materials modifications
to its liquidity wants. The Belief’s solely unusual recurring bills are the Sponsor Payment and the Staking Payment. In change for the
Sponsor Payment, the Sponsor has agreed to imagine the unusual charges and bills incurred by the Belief, together with however not restricted to the
following: charges charged by the Administrator, the Custodians, the Switch Agent and the Trustee, the Advertising Payment, the Change’s
itemizing charges, typical upkeep and transaction charges of the Depository Belief Firm (“DTC”), SEC registration charges, printing
and mailing prices, web site charges, tax reporting charges, audit charges, license charges and bills, as much as $100,000 each year in unusual authorized
charges and bills. The Sponsor bears bills in reference to the Belief’s group and preliminary providing prices.

The
Sponsor will not be required to pay any extraordinary or non-routine bills. Extraordinary bills are charges and bills that are sudden
or uncommon in nature, equivalent to authorized claims and liabilities and litigation prices or indemnification or different unanticipated bills. Extraordinary
charges and bills additionally embody materials bills which aren’t at the moment anticipated obligations of the Belief. The Belief can be accountable
for the fee of such bills to the extent any such bills are incurred. Routine operational, administrative, and different unusual
bills are usually not deemed extraordinary bills. The Belief will promote SUI on an as-needed foundation to pay the Sponsor Payment and the Staking
Payment.

Off-Stability
Sheet Preparations

The
Belief doesn’t have any off-balance sheet preparations.

Merchandise
3. Quantitative and Qualitative Disclosures about Market Dangers

The
Belief is a smaller reporting firm as outlined by Rule 12b-2 of the Change Act and isn’t required to offer the data
in any other case required underneath this merchandise.

Merchandise
4. Controls and Procedures

The
duly licensed officers of the Sponsor performing features equal to these a principal government officer and principal monetary
officer of the Belief would carry out if the Belief had any officers, have evaluated the effectiveness of the Belief’s disclosure controls
and procedures, and have concluded that the disclosure controls and procedures of the Belief had been efficient as of the top of the interval
lined by this report to offer affordable assurance that info required to be disclosed within the reports that the Belief information
or submits underneath the Change Act, is recorded, processed, summarized and reported, throughout the time intervals specified within the relevant
guidelines and varieties, and that it’s collected and communicated to the duly licensed officers of the Sponsor performing features equal
to these a principal government officer and principal monetary officer of the Belief would carry out if the Belief had any officers, as applicable
to permit well timed selections relating to required disclosure.

There
are inherent limitations to the effectiveness of any system of disclosure controls and procedures, together with the potential of human
error and the circumvention or overriding of the controls and procedures.

Modifications
in Inside Management over Monetary Reporting

Throughout
the quarter ended June 30, 2026, there have been no modifications in our inner management over monetary reporting, as such time period is outlined
in Guidelines 13a-15(f) and 15(d)-15(f) promulgated underneath the Change Act, which have materially affected, or are fairly prone to materially
have an effect on, our inner management over monetary reporting.

PART
II – OTHER INFORMATION:

Merchandise
1. Authorized Proceedings

From
time to time, the Belief could also be a celebration to sure authorized proceedings within the unusual course of enterprise. As of June 30, 2026, the Belief
was not topic to any materials authorized proceedings, nor, to our data, are any materials authorized proceedings threatened in opposition to the Belief.

Merchandise
1A. Danger Components

There
have been no materials modifications to the Danger Components final reported underneath “Half II, Merchandise 1A. Danger Components” of the
Belief’s Quarterly Report on Type 10-Q for the interval ended March 31, 2026.

Merchandise
2. Unregistered Gross sales of Fairness Securities and Use of Proceeds

The Belief doesn’t buy
Shares instantly from its Shareholders. In reference to its redemption of Creation Baskets held by Approved Individuals, the
Belief redeemed 12 Creation Baskets (comprising 120,000 Shares) in the course of the quarter ended June 30, 2026. The next desk summarizes
the redemptions of Shares by Approved Individuals in the course of the interval:

Interval

Complete
Shares
Redeemed

Common
Worth Per
Share

Most
quantity
of shares
that will
but be bought

April 1, 2026 – April 30, 2026

120,000

17.61

N/A

Might 1, 2026 – Might 31, 2026

–

N/A

June 1, 2026 – June 30, 2026

–

N/A

Market
Info

The
Shares are listed on the Change underneath the image “TSUI” and have been listed since February 24, 2026.

Holders

As of June 30, 2026, there
was roughly one DTC taking part shareholder of document of the Belief. As a result of many of the Belief’s Shares are held by brokers
and different establishments on behalf of shareholders, we’re unable to estimate the overall variety of shareholders represented by these document
holders.

Merchandise
3. Defaults Upon Senior Securities

None.

Merchandise
4. Mine Security Disclosures

Not
relevant.

Merchandise
5. Different Info

No
officers or administrators of the Sponsor have adopted, modified or terminated buying and selling plans underneath both a Rule 10b5-1 or non-Rule 10b5-1
buying and selling association (as such phrases are outlined in Merchandise 408 of Regulation S-Ok of the Securities Act) for the quarter ended June 30, 2026.

Merchandise 6.
Displays.

Listed
beneath are the displays, that are filed as a part of this quarterly report on Type 10-Q (in response to the quantity assigned to them
in Merchandise 601 of Regulation S-Ok):

Exhibit Quantity		Description of Doc
3.1⁽²⁾		Belief Settlement.
3.2⁽³⁾		Amended and Restated Belief Settlement.
3.3⁽²⁾		Certificates of Belief.
3.4⁽²⁾		Certificates of Modification to Certificates of Belief.
31.1⁽¹⁾		Certification by Principal Government Officer Pursuant to Part 302 of the Sarbanes-Oxley Act of 2002.
31.2⁽¹⁾		Certification by Principal Monetary Officer Pursuant to Part 302 of the Sarbanes-Oxley Act of 2002.
32.1⁽¹⁾		Certification by Principal Government Officer Pursuant to 18 U.S.C. Part 1350, as Adopted Pursuant to Part 906 of the Sarbanes-Oxley Act of 2002.
32.2⁽¹⁾		Certification by Principal Monetary Officer Pursuant to 18 U.S.C. Part 1350, as Adopted Pursuant to Part 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Occasion Doc.
101.SCH		XBRL Taxonomy Extension Schema Doc.
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Doc.
101.DEF		XBRL Taxonomy Extension Definition Linkbase Doc.
101.LAB		XBRL Taxonomy Extension Label Linkbase Doc.
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Doc.
104		Cowl Web page Interactive Information File (formatted as Inline XBRL and contained in Exhibit 101)

(2)	Integrated by reference to the Belief’s Modification No. 3 to Registration Assertion on Type S-1, filed on January 30, 2026

(3)	Integrated by reference to the Belief’s Quarterly Report on Type 10-Q, filed on Might 15, 2026.

SIGNATURES

Pursuant
to the necessities of the Securities Change Act of 1934, the registrant has duly brought about this report back to be signed on its behalf by
the undersigned thereunto duly licensed.

21Shares
Sui ETF

By:
21Shares US LLC, its Sponsor

By:	/s/ Russell Barlow
	Russell Barlow
	Chief Government Officer
	(Principal Government Officer)

Date: August 12, 2026

By:	/s/ Duncan Moir
	Duncan Moir
	President (Principal Monetary Officer and Principal Accounting Officer)

Date: August 12, 2026