21Shares, a prominent digital asset investment firm, has revised its
Introducing staking marks a notable advancement in the structure of crypto ETFs. The amended filing states that 21Shares will delegate Sui tokens for staking through Coinbase, which will handle transaction validation, block creation and approval, and distribute earned rewards back to the trust, as outlined by Coinotag. These rewards will be added to the ETF’s net asset value, potentially boosting returns compared to funds that do not stake. Historical figures from the Sui network indicate average annual staking returns between 5% and 7%, though these may fluctuate with network conditions, Coinotag notes. Details such as the fund’s expense ratio and trading symbol remain undisclosed and are expected to be provided in future filings once operational specifics are finalized, per Cryptopolitan.
The ETF’s planned Nasdaq listing, which will comply with Rule 5711(d), ensures adherence to strict regulatory requirements for commodity-based trust shares, according to Coinotag. This initiative meets the rising demand for institutional-grade crypto investment products, as reflected in the immediate market response: SUI’s token price climbed 3% to $2.47 after the filing, and futures open interest increased by 3% to $823 million within an hour, based on Cryptopolitan’s report referencing CoinGlass data. Experts suggest that combining staking with Nasdaq trading makes the 21Shares Sui ETF among the first U.S. offerings to provide regulated access to proof-of-stake rewards with liquidity, as Coinotag reports.
The fund’s partnership model adds to its credibility. Coinbase Custody will be responsible for safeguarding digital assets and managing staking, while BNY Mellon will act as the cash custodian, overseeing non-crypto assets, according to Coinotag. However, specifics about transfer and marketing agents are not included in the filing and may be revealed after SEC approval. The SEC’s heightened scrutiny of crypto ETFs has led to approval delays, but 21Shares’ decision to update its filing during a government shutdown highlights its dedication to regulatory compliance, as reported by Coingabbar.
Industry analysts emphasize the strategic importance of this move. By incorporating staking, 21Shares sets its product apart from conventional crypto funds, potentially appealing to investors interested in earning yields without managing validator nodes, Coingabbar observes. The scalability of the Sui network and its increasing adoption among institutions further enhance the ETF’s attractiveness. As the SEC continues to review spot crypto ETF proposals, the 21Shares Sui ETF exemplifies the merging of blockchain technology with traditional finance, potentially paving the way for future crypto investment products, according to analysts.