SUI price holds steady as Canary’s SUI ETF application advances with SEC

The US Securities and Exchange Commission (SEC) has moved forward with proceedings on the Canary SUI Spot exchange-traded fund (ETF) application, formally launching a review process that could eventually lead to the first US-listed ETF tied to SUI. 

Canary Funds initially filed its proposal to launch the ETF on March 17, 2025. Cboe BZX Exchange followed up with a proposed rule change to list and trade shares of the fund, officially called the Canary SUI ETF, under the Commodity-Based Trust Shares segment. The filing appeared in the Federal Register on April 25, starting the public comment period.

The regulatory development has not impacted the token’s price, which is consolidating around $3.87, 0.4% down from its level 24 hours ago, at the time of this publication. Despite its intraday negative performance, SUI is still up 53% in the last 30 days per Coingecko data.

SEC opens formal review process of Canary’s SUI ETF 

According to the SEC’s July 22 statement, the commission has instituted proceedings to determine if the Cboe exchange’s proposed rule change should be approved or denied. 

On June 4, 2025, the agency used its authority under Section 19(b)(2) of the Securities Exchange Act to extend the review period to assess the implications of allowing the ETF to trade.

“Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the SEC noted in the filing. The agency plans to conduct a more in-depth analysis of whether the proposed ETF complies with Section 6(b)(5) of the Exchange Act.

This particular section requires that the rules of any national securities exchange “prevent fraudulent and manipulative acts and practices” and “protect investors and the public interest.”

Review process starts 35-day public feedback and rebuttal proceedings

The Commission has opened the floor for public comment, encouraging interested parties to submit written data, arguments, and perspectives on the proposed ETF. Specifically, the SEC wants stakeholders to address the sufficiency of the Cboe BZX Exchange’s rationale for supporting the listing, as outlined in the original notice.

According to the Securities Exchange Act of 1934, the SEC has 45 calendar days to approve, disapprove, or extend the review period for the proposal. If additional time is needed, the agency can extend this period by another 45 days, bringing the total to 90 days. 

Should the Commission still require further analysis, it can institute formal proceedings inviting public comment and examination of the proposal. Once proceedings are instituted, the SEC typically sets a 21-day window for public comments and an additional 14-day period for rebuttals for stakeholders to weigh in.

It must approve or disapprove the proposed rule change within 240 calendar days from the date of publication in the Federal Register, which ends around December 25.

Additionally, the SEC has asked commenters to list any problems that might come up from listing and trading an ETF directly tied to the SUI token. Oral presentations will not be scheduled by default, but individuals can formally request such opportunities under Rule 19b-4.

Written comments on the proposal must be submitted within 21 days of the notice’s publication in the Federal Register. 

Per the SEC’s release, the SUI ETF is backed by the performance of SUI, as measured by the CoinDesk SUI USD CCIX 60-minute New York Rate. The trust will hold actual SUI tokens and will value its shares daily at 4:00 p.m. ET using the same methodology as the benchmark.

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