SEC reviews Canary SUI ETF as token surges 53% ahead of July 24 decision

The U.S. Securities and Exchange Commission (SEC) has initiated a formal review of Canary Capital’s proposed spot SUI exchange-traded fund (ETF), marking a pivotal step in the regulatory journey for the SUI blockchain asset. The SEC’s decision to advance the application to the “institution of proceedings” phase reflects a growing willingness to engage with Layer-1 blockchain projects, potentially opening new avenues for institutional and retail investors. Canary Capital’s initial filing in March 2025 and subsequent S-1 registration highlight its strategic effort to establish a regulated investment vehicle for SUI, a token associated with the Sui Network. This move aligns with broader market trends, as other asset managers, including 21Shares, have also submitted spot SUI ETF applications, underscoring competitive interest in the asset class [2].

Institutional demand for SUI has intensified in recent weeks, driven by a surge in futures open interest to $1.2 billion as of July 7, 2025 [3]. This metric, a key indicator of speculative and hedging activity, suggests growing confidence among market participants. The SUI token’s price has also shown robust momentum, rising 53% over the past 30 days as of July 15, 2025 [1]. Technical analysis further reinforces this optimism: SUI is currently trading near $3.95, comfortably above its 200-day moving average of $2.73, with a relative strength index (RSI) of 66. Analysts note that the token is approaching a critical resistance level at $4.00, and a breakout could trigger further upward movement [3].

The SEC’s extended review timeline, which now includes a July 24 decision deadline [2], has drawn attention from investors and analysts as a potential catalyst for broader institutional adoption. However, the regulatory landscape remains fluid. For instance, the SEC recently paused the conversion of Bitwise’s crypto index fund to an ETF, while extending deadlines for other applications like 21Shares’ SUI ETF. These actions highlight the agency’s balancing act between fostering innovation and addressing investor protection concerns [5]. Market participants are closely monitoring these developments, as regulatory outcomes could significantly influence SUI’s trajectory.

The implications for investors are multifaceted. A successful approval of the SUI ETF would provide a regulated avenue for exposure to the asset, potentially reducing counterparty risks associated with unregulated products. Additionally, the growing institutional interest and technical strength of SUI could attract further capital inflows, enhancing liquidity and market depth. However, investors must remain cautious, as regulatory delays or rejections could dampen momentum, and the asset’s volatility remains a key risk factor. Analysts have cautiously projected price surges if the ETF is approved, though these forecasts are contingent on regulatory outcomes [3].

The SUI token’s performance has also been bolstered by its inclusion in the Bitwise Crypto Index ETF, which now includes SUI alongside Bitcoin and Ethereum. This inclusion reflects increasing acceptance among traditional financial players and may drive further capital into the asset. The July 24 decision date, aligned with a critical juncture for the crypto market, could serve as a pivotal moment for SUI’s institutional adoption. While the SEC’s current approach underscores the complexity of navigating regulatory scrutiny for crypto products, the ongoing review of the SUI ETF signals a gradual shift toward a more structured framework for digital asset investments.

Sources:

[1] Mitrade, SUI price holds steady as Canary's SUI ETF application... https://www.mitrade.com/au/insights/news/live-news/article-3-981026-20250723

[2] Bitget, SEC Delay on Canary SUI ETF Proposal May Influence... https://www.bitget.com/news/detail/12560604797113

[3] Coinpedia, SEC Begins Review of SUI ETF Proposal, Analysts Predict... https://coinpedia.org/news/sec-begins-review-of-sui-etf-proposal-analysts-predict-price-surge/

[5] Crypto, SEC Approves, Immediately Pauses Bitwise's Bid to... https://cryptoadventure.com/sec-approves-immediately-pauses-bitwises-bid-to-convert-bitw-crypto-index-fund-to-etf