The U.S. SEC has delayed its decision on approving the 21Shares spot SUI ETF, extending regulatory scrutiny over digital asset ETFs, as reported on September 5 by PANews.
The postponement underscores regulatory caution towards digital asset ETFs, potentially affecting investor sentiment and signaling hurdles for new crypto investment tools.
SEC Postpones 21Shares SUI ETF Decision Amid Caution
The SEC’s decision to delay its approval decision for the 21Shares spot SUI ETF reflects its ongoing caution in regulating digital asset ETFs. 21Shares US LLC sponsors the proposed ETF with Coinbase Custody Trust Company serving as the SUI custodian and CSC Delaware Trust Company acting as the trustee.
The postponement underlines the continued regulatory uncertainty around digital assets and their use in financial products. While the ETF aims to broaden access to Sui blockchain investments, the SEC’s decision reflects ongoing concerns about market accountability and investor protection.
Market reactions have been muted, with key figures in the crypto space not making statements on public channels. “No public comments have been made by 21Shares or Coinbase Custody regarding the SEC’s decision as of now, reflecting a cautious approach likely awaiting subsequent regulatory updates.” The deferment suggests investors are anticipating further regulatory clarity before adjusting positions on the SUI token.
Potential Impacts of ETF Approval on SUI’s Market Standing
Did you know? Previous delays in Bitcoin and Ethereum ETFs often led to initial market volatility but resulted in significant longer-term appreciation post-approval.
As of September 4, 2025, Sui (SUI) is valued at $3.31 with a market cap of $11.81 billion and a circulatory supply of 3.57 billion, per CoinMarketCap. Despite a recent 2.39% price drop within 24 hours, SUI has seen a 13.42% increase over 60 days.
Industry experts speculate that successful approval of the 21Shares ETF could potentially elevate SUI’s market prominence, spurring institutional participation. The SEC’s eventual decision might reshape ETF regulatory views on digital assets, setting potential standards for Layer 1 blockchain tokens.
In other news, Grayscale Investments filed a registration statement with the U.S. Securities and Exchange Commission last month. The filing aims to convert its existing Avalanche Trust into a publicly traded spot ETF on Nasdaq, providing regulated exposure to AVAX, the native token of the Avalanche blockchain, according to the S-1 filed on Aug. 22.
Recently, Grayscale filed an S-1 form with the SEC to convert its Avalanche Trust into a spot ETF that would trade on Nasdaq.
