The US Securities and Exchange Commission (SEC) has begun a formal review of the Canary SUI exchange-traded fund (ETF) application, a step that may lead to the creation of the first ETF linked to the SUI token.
ETF Application by Canary Funds
Canary Funds initially filed its application to launch the ETF on March 17, 2025. Subsequently, the Cboe BZX Exchange proposed a rule change to list and trade shares of the fund, officially called the Canary SUI ETF. The filing appeared in the Federal Register on April 25, starting the public comment period.
Overview of SEC's Review Process
According to the SEC’s July 22 statement, the commission has instituted proceedings to determine if the proposed rule change by the Cboe exchange should be approved or denied. On June 4, 2025, the agency extended the review period to assess the implications of allowing the ETF to trade, noting that the initiation of proceedings does not imply any conclusions from the Commission.
Public Comments and Feedback
The Commission has opened the floor for public comments, inviting interested parties to submit written data and arguments regarding the proposed ETF. The SEC requires participants to evaluate the sufficiency of Cboe BZX’s rationale for supporting the listing. According to the Securities Exchange Act of 1934, the SEC has 45 calendar days to approve or disapprove the proposal, with the possibility of extending this period.
The review of the Canary SUI ETF application continues to attract attention in the financial markets. The Commission will analyze potential risks and benefits before making a final decision.
