21Shares has submitted an updated application to the U.S. Securities and Exchange Commission (SEC) regarding its Sui ETF. The document specifies staking details for the first time and confirms that the fund will be traded on Nasdaq. The chosen custodial partners are Coinbase and Bank of New York Mellon.
New ETF format with staking income
According to the updated S-1 filing, the fund will allow investors to receive rewards from staking Sui tokens without the need to manage private keys or network nodes. Coinbase has signed a two-year agreement with 21Shares and will become the main network validator responsible for block creation and token security.
Rewards earned from staking will be returned to the trust, increasing the value of the ETF shares. Thus, investors will have the opportunity to earn passive income within a regulated product—without direct involvement in blockchain asset management.
Fund partners and infrastructure
21Shares confirmed that the ETF will be listed on Nasdaq in accordance with rule 5711(d), which regulates trading of commodities and trust assets. This will ensure transparency and oversight by the exchange, as well as access for institutional investors.
The Bank of New York Mellon will act as the custodian of the fund’s cash, while Coinbase Custody will be responsible for custody of the Sui tokens. This dual asset management format reflects the company’s aim to combine traditional financial standards with blockchain mechanisms.
The updated application does not specify the fund’s trading ticker or fees, but 21Shares has promised to disclose them in subsequent documents after agreement with the SEC.
Market reaction and impact on the SUI token
After the news was published, the price of the SUI token rose from $2.40 to $2.47, and open interest in futures increased by 3%, reaching $823 million, according to CoinGlass. Over the day, the figure rose by more than 7%, indicating increased trader activity and a positive market reaction.
Analysts note that adding staking to the ETF structure increases the instrument’s appeal, offering investors returns similar to DeFi products but within a regulated market.
A step towards hybrid investment models
The Sui ETF from 21Shares could become one of the first exchange-traded funds in the U.S. to combine traditional investment mechanisms with blockchain income. This format paves the way for new hybrid products, where crypto assets generate rewards and investors remain within the SEC’s legal framework.
The application update also highlights 21Shares’ desire to speed up the approval process after the temporary government shutdown, which delayed several ETF projects. The company has demonstrated its willingness to meet additional regulatory requirements to bring the product to market as soon as possible.
What’s next?
Experts believe that the Sui ETF could serve as a test case for future cryptocurrency funds with built-in income. If the SEC approves the staking model, it will set a new precedent for institutional blockchain-based products.
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