The SEC has postponed its decision on the 21Shares proposal for an ETF based on SUI, reflecting ongoing cautious regulation of crypto ETFs.
SEC's Postponed Ruling on SUI ETF
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed SUI ETF by 21Shares, which aims to track the native asset of the Sui blockchain. This delay indicates the SEC's cautious stance towards crypto ETFs, with the review identified under SR-CboeBZX-2025-053. Public comments on the proposal are open until August 15, 2025.
Institutional Caution Amid No Immediate Changes
No immediate financial shifts have been reported for SUI, although institutional investors remain cautious. Past significant inflows in Ethereum ETFs have indicated potential interest from institutional investors once regulatory approval is granted. Historical delays in decision-making often lead to minor market volatility, demonstrating a wait-and-see approach among stakeholders.
History of ETF Delays and Its Impact
Similar delays have occurred with Solana ETF proposals, emphasizing the regulatory body's prudent review of layer 1 assets. This contrasts with quicker approvals seen for Bitcoin and Ethereum ETFs. Experts suggest that minor volatility may occur in SUI if approved, with likely increases in institutional inflows based on previous trends in Ethereum ETF activity.
The SEC's delay regarding the SUI ETF proposal reflects the overall regulatory caution concerning crypto assets and may influence investor sentiment.
