Canary Capital Group, a digital asset investment company, announced that it has applied to US regulators to launch an exchange-traded fund (ETF) tied to the spot price of the cryptocurrency Sui, associated with blockchain service provider Sui Network. This brings the total number of crypto ETF applications submitted by Canary Capital to six. As regulatory uncertainty in the US crypto market persists, especially after the November presidential elections, there has been an increase in new ETF applications. The re-election of Donald Trump strengthened expectations that regulations would be relaxed in the sector. Trump’s promise to review the regulatory framework for digital assets raised market expectations and encouraged many issuers to make new applications. Steven McClurg, the founder of Canary Capital, emphasized that the atmosphere in the crypto market has changed significantly since the elections, stating, “I believe that the majority of these applications will be approved by the end of 2025”.

SEC ENTERS A NEW PHASE IN CRYPTO ETF APPLICATIONS
As the US enters a new phase in crypto regulations, the priorities of the SEC are also beginning to change. Under the previous administration, stringent oversight policies over the sector led to many major crypto companies facing sanctions. However, with Trump taking office, it is indicated that the SEC is considering lifting some of the regulatory restrictions imposed by the previous administration. The review of regulations that tightened crypto asset custody requirements for investment advisers is on the agenda. Additionally, McClurg noted that Paul Atkins, whom Trump nominated for chairman of the SEC, has not yet been approved by the Senate, and the SEC will not greenlight new ETFs until this process is completed.

FIRST ETF APPLICATION BACKED BY SUI
Canary Capital’s application stands out as the first official initiative aiming to create an ETF backed by Sui. With a market value exceeding 7.4 billion dollars and ranked among the top 25 cryptocurrencies by CoinMarketCap data, Sui has the potential to offer investors a new alternative. Currently, only Bitcoin and Ethereum spot ETFs are available in the market. After these ETFs started trading in 2024 with SEC approval, issuers made new ETF applications containing more than 10 different crypto assets. Among the most popular new applications are Solana (SOL) and Ripple (XRP), each of which has six separate ETF applications submitted.