Nasdaq has officially filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to list the 21Shares SUI ETF, signaling a formal step toward bringing a spot SUI-based exchange-traded fund to American markets. The timing comes as the Sui blockchain recovers from recent setbacks and shows signs of renewed strength in both institutional adoption and ecosystem development.

The filing initiates the SEC’s review process and could make the 21Shares SUI ETF one of the first altcoin-specific ETFs to hit U.S. markets, following closely behind the growing trend of Ethereum-based products. The ETF is designed to offer U.S. investors regulated exposure to the Sui blockchain’s native asset, which has seen increased attention thanks to its scalable infrastructure and growing ecosystem of decentralized applications (dApps), DeFi platforms, and real-world asset tokenization.

Institutional Demand Builds for Regulated SUI Access

The push for a U.S.-listed SUI ETF follows significant global activity around SUI-based investment products. Over $300 million has already been committed to SUI exchange-traded products (ETPs), primarily through listings on Euronext Paris and Amsterdam. The move to file in the U.S. suggests a rising appetite among North American investors for regulated, compliant exposure to next-generation blockchain protocols like Sui.

The Sui Foundation welcomed the filing, describing it as a crucial step in the formal ETF approval process. In a recent blog post, the foundation confirmed that the 19b-4 document has been posted to the SEC’s public register, setting in motion the regulatory timeline for a potential spot ETF listing.

The ETF filing also builds on 21Shares’ earlier S-1 registration submitted in April, reflecting broader institutional momentum around the project. If approved, the ETF could provide a boost in liquidity, visibility, and legitimacy for the Sui token (SUI) across regulated financial markets.

DeFi Growth and Stablecoin Activity Boost Sui’s Profile

Behind the ETF proposal lies an improving set of metrics that have helped restore investor confidence following recent turbulence in the Sui ecosystem. According to data from DeFiLlama, Sui now ranks eighth in total value locked (TVL), with over $1.94 billion committed to its DeFi protocols. That figure marks a robust recovery from earlier levels following a high-profile hack and showcases the network’s resilience.

Stablecoin activity on the Sui blockchain has also surged. The stablecoin market cap on Sui currently exceeds $1.1 billion, representing a year-to-date growth of more than 190%. Additionally, stablecoin transfer volumes on the chain crossed $110 billion in May alone—an impressive signal of transactional activity and liquidity depth.

These metrics are particularly relevant in the context of ETF evaluations, as regulators and institutional players look for signs of a healthy, active network before committing capital.

Cetus Hack Recovery and Security Overhaul

The optimism surrounding the ETF filing comes on the heels of a major challenge for the Sui network. In late May, the ecosystem was rocked by a $260 million exploit targeting Cetus, a leading decentralized exchange and liquidity protocol built on Sui and Aptos. The incident raised concerns about smart contract vulnerabilities and protocol security.

In response, the network took swift action to stabilize user sentiment and prevent future issues. The recovery plan included a controversial $162 million restitution proposal and a $10 million upgrade in overall security infrastructure. As part of this effort, the Sui Foundation shifted toward shared accountability and ramped up support for dApp developers.

These measures appear to have reassured the community. Cetus has regained much of its TVL, and Sui as a whole has continued to attract users, developers, and capital.

Strong Fundamentals and Long-Term Outlook

The recent rebound in SUI price adds further weight to the bullish narrative. Since the beginning of June, the asset has climbed 18%, trading at approximately $3.47 at the time of writing. While the daily gain is modest—around 2%—the sustained upward trend reflects a broader shift in sentiment following the network’s security overhaul and recovery.

Sui’s technology remains one of its core strengths. The protocol’s object-oriented design and horizontally scalable infrastructure allow it to support a broad range of use cases, including decentralized finance, gaming, and the tokenization of real-world assets (RWAs). These characteristics make Sui an attractive candidate not just for retail investors, but also for institutions looking to diversify their blockchain exposure beyond Ethereum and Bitcoin.

Kevin Boon, President of Mysten Labs, which is behind the Sui blockchain, highlighted this shift by stating that Sui is fast becoming a hub for serious builders and institutional investors alike. He emphasized the network’s scalability, adaptability, and growing ecosystem as major advantages in the competitive blockchain landscape.

What’s Next for the 21Shares SUI ETF?

With Nasdaq’s 19b-4 filing now under formal SEC review, the path toward a U.S.-listed spot SUI ETF depends heavily on regulatory response, continued network growth, and investor sentiment. The SEC’s decisions on other altcoin ETFs—especially Ethereum-based ones—will likely set the tone for how quickly the SUI ETF might be approved.

If greenlit, the ETF could unlock a new wave of institutional inflows, helping Sui cement its place among top-tier blockchain platforms and signaling a new era of altcoin adoption within regulated financial frameworks.

For now, all eyes are on the SEC as the crypto industry watches whether Sui becomes the next digital asset to achieve ETF recognition in the U.S.