21Shares is making a major move in the U.S. crypto space. The firm replaced its SUI ETF filing with the Securities and Exchange Commission (SEC) with a new one.
The new filing includes information on staking, clarifies the ETF will list on Nasdaq, and identifies custodians for cash and digital assets. The action might position the ETF to appeal to investors looking to accumulate rewards while they hold the token.
Staking Arrives at the 21Shares SUI ETF
The revised S-1 filing, filed after the close on October 23, contains a new part titled “Staking of Trust’s Assets.” It describes how the Exchange Traded Fund will implement staking, including the unbonding period for staked assets, redemption requirements, trust size, and observing market conditions.
21Shares US LLC has partnered with Coinbase Crypto Services for staking. Coinbase will be responsible for validating, approving, and creating blocks of transactions for the Exchange Traded Fund for the next two years.
The filing is incomplete as of now with the ticker symbol for the fund and management fees, which are likely to take shape in future updates.
Nasdaq Listing and Custodians are confirmed
The filing confirms it will be listed on Nasdaq. The Bank of New York Mellon will act as cash custodian while Coinbase Custody will custody the digital assets.
These collaborations are intended to provide regulated, safe treatment of funds, which can instill more confidence in investors.
Other details, such as the transfer agent and marketing agent, are not yet disclosed. If approved, the fund will track token’s price using the CME CF Sui Dollar Reference Rate, a widely recognized benchmark for the token’s performance.
Market Reaction
Following the filing, SUI token price increased 2.5% to $2.47. Futures trading also gained some momentum, with open interest increasing 3% within an hour, reaching a high of $823 million.
Source: CoinMarketCap
It is now trading at $2.48 with an increase of 0.88% in the last 24 hours, while trading volume has decreased by 18.64% to reach $891.7 million.
Why This Matters for Crypto ETFs
This follows as the SEC keeps scrutinizing crypto ETF applications. Most of the decisions have been held back as the SEC collaborates with the exchanges to establish standardized rules for spot crypto ETFs. By incorporating stakeing and securing Nasdaq listing, 21Shares is making its SUI ETF an exclusive offering in the U.S. market.
Conclusion
The amendment of the 21Shares SUI ETF illustrates how digital currency and traditional finance are finally meeting. With staking, custodians who are trustworthy, and listing on Nasdaq, this crypto investment product might allow investors exposure to the cryptocurrency and possible rewards. The market now waits to see what the SEC does.
