Grayscale begins procedures to launch SUI spot ETF

Grayscale has officially begun the procedures to launch a SUI (SUI) spot ETF.

On the 5th (local time), Grayscale announced that it submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) to establish the 'Grayscale SUI Trust (SUI)'.

This trust is an entity established under Delaware law that holds SUI, a digital asset based on the Sui network, and issues shares based on it. If the registration documents become effective, the trust name will be changed to 'Grayscale SUI Trust ETF.'

The trust's objective is to have the share value directly track the net asset value (NAV) that reflects SUI price fluctuations and staking rewards when conditions are met. Through this, investors can obtain exposure to SUI via the ETF without holding SUI directly.

The product is currently trading on the OTCQX market under the ticker 'GSUI', and after conversion to an ETF, it is planned to be listed on NYSE Arca under the same ticker. Shares will be continuously issued, and purchases/redemptions will be conducted in 10,000-share basket units.

Creations and redemptions can be done via in-kind SUI exchanges and cash orders. NYSE Arca has already approved in-kind creations and redemptions, and a structure allowing authorized participants (APs) to directly exchange SUI with the trust is permitted.

The sponsor is Grayscale Investments, and the trustee is CSC Delaware Trust. The administrator/transfer agent and prime broker/custodian will be BNY Mellon and Coinbase, respectively.