Sui Token Gets Wall Street Debut With 21Shares' Leveraged ETF

Switzerland-based ETF issuer 21Shares has launched the first U.S.-traded exchange-traded product tracking the price of Sui (CRYPTO: SUI), a fast-growing cryptocurrency, as the surge in crypto ETF launches shows no signs of slowing.

The 21Shares 2x SUI ETF (NASDAQ:TXXS) is a leveraged fund designed to deliver twice the daily return of the Sui token, offering investors a high-risk, high-reward vehicle to capitalize on price movements. Russell Barlow, CEO of 21Shares, emphasized the growing demand for simplified digital asset products. He noted that with this ETF, the issuer aims to capitalize on one of the winners rising to the occasion and ushering in the next era of blockchain technology, which is dominated by simplicity.

Sui is a decentralized cryptocurrency that uses a proof-of-stake consensus mechanism to enable peer-to-peer transactions without intermediaries. Its native token is used to pay transaction fees on the network, participate in network governance, and stake. The network has consistently processed over $180 billion in stablecoin transfer volume per month for 4 months in a row and has exceeded $10 billion in 30-day decentralized exchange volume, underscoring its growing adoption.

Funds like TXXS are typically designed for sophisticated active traders; the use of a derivatives-based strategy increases risk beyond that of most simple, long positions. Recently, the U.S. Securities and Exchange Commission blocked several would-be launches of 3x and 5x leveraged ETFs, reinforcing caution in the sector. ETF.com observed that regulators summarily rejected efforts to game Rule 18f-4 by using non-underlying assets for leverage tests.

Setting a rare precedent, TXXS is one of the first crypto-based ETFs to enter the U.S. market as a leveraged product. According to Bloomberg Senior ETF Analyst Eric Balchunas, TXXS is the 74th crypto-based ETF this year and 128th overall, but there could be as many as 80 more within the next 12 months.

The launch follows FalconX’s acquisition of 21Shares last month, which saw it also unveil its leveraged Dogecoin ETF, the 21Shares 2x Long Dogecoin ETF (NASDAQ:TXXD), amid a continued broadening of crypto-linked investment products in the U.S. market.

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