The competition to bring Sui to retail investors is intensifying.
Just days after 21Shares launched the first Sui‑based ETF on Nasdaq, a major rival has entered the market.
Grayscale files S-1 for new SUI ETF
Grayscale has filed an S-1 with the SEC to launch the “Grayscale Sui Trust,” a spot-style ETF designed to provide direct exposure to the SUI token.
Its goal is simple: to mirror SUI’s market performance, minus fees, giving long-term investors a regulated, hassle-free way to hold SUI without managing the asset directly.
This move extends Grayscale’s single-asset strategy beyond Bitcoin and Ethereum.
In fact, this swift move signals that the race for Sui [SUI] investment products is already becoming a direct competition.
21Shares’ focus on short-term gains
The 21Shares 2x Long Sui ETF, under the ticker TXXS has already gone live.
Listed on Nasdaq following approval from the SEC, this is a derivatives-based, leveraged ETF. This means it does not hold the actual SUI tokens.
Instead, it uses financial contracts to provide two times (2x) the daily performance of SUI. This product is specifically aimed at active traders and speculators.
It allows them to amplify short-term movements in the SUI price without ever having to hold the underlying crypto, making it a powerful tool for those focused on quick gains or losses.
The regulatory difference explains the timing
The two Sui products are rolling out at different speeds, largely due to the SEC’s approach to their structures.
For years, the SEC has delayed spot ETFs for assets like Bitcoin and Ethereum. In contrast, it has been quicker to approve derivatives‑based funds, which regulators view as less vulnerable to manipulation and custody risks.
This explains why 21Shares launched first. Its product uses a leveraged, derivatives‑based model that the SEC already understands and has approved more readily.
Meanwhile, Grayscale is pursuing a path that is slower and subject to heavier scrutiny, much like the long approval process faced by Bitcoin and Ethereum [ETH] spot ETFs.
As both firms compete for dominance in the Sui market, the token’s price continues to mirror the broader volatility of the crypto sector.
At press time, SUI was trading at $1.53, showing a 5.01% drop over the last 24 hours. This suggests that the initial news of the ETF race has yet to translate into immediate, sustained positive price momentum.
However, the bigger takeaway is the continuing institutional focus on altcoins beyond the giants.
Altcoin ETF era and more
This aggressive entry into the Sui ecosystem by two major financial firms confirms that the “Altcoin ETF era” is fully underway.
This trend is reinforced by recent trading data, which shows a clear rotation of investor capital.
While Ethereum ETFs recently recorded significant outflows worth $75.2 million, Solana [SOL] ETFs recorded inflows of $15.7 million, and Ripple [XRP] ETFs pulled in $10.23 million.
This dynamic flow of money strongly suggests that institutional investors are actively seeking exposure to high-growth, next-generation blockchains.
Final Thoughts
- The entry of Grayscale and 21Shares into Sui highlights growing institutional demand for altcoin ETFs.
- Capital rotation from Ethereum into Solana, Ripple, and now Sui signals a broader shift toward next‑generation blockchains.
Source: https://ambcrypto.com/how-grayscales-s-1-filing-marks-a-new-chapter-in-suis-etf-push/

