DTCC Clears Path for 21Shares SUI and Polkadot ETFs, SEC Awaits

TLDR

• 21Shares has received a DTCC listing for its SUI and Polkadot ETFs, clearing the way for potential market entry.
• The DTCC listing does not confirm SEC approval but signals operational readiness for these crypto ETFs.
• The SUI ETF was listed under the ticker TSUI, while the Polkadot ETF was listed under TDOT.
• Despite the listing, both ETFs experienced modest price movements, with SUI gaining 3% and Polkadot 2%.
• Analysts have given the approval chances for Polkadot ETFs a 90% likelihood and SUI ETFs a 60% likelihood.

21Shares has moved forward with its SUI and Polkadot ETFs, both of which have received listing on the Depository Trust & Clearing Corporation’s (DTCC) National Securities Clearing Corporation (NSCC) list. This move positions the ETFs for potential listing and settlement, though they still await regulatory approval from the U.S. Securities and Exchange Commission (SEC). The DTCC’s recent updates mark an essential step, clearing the way for potential launches in the near future.

21Shares SUI ETF Receives DTCC Listing

The 21Shares SUI ETF, listed under the ticker TSUI, was recently added to the DTCC’s clearing list. This marks a significant milestone, as it clears the path for the ETF’s operational launch. However, it’s crucial to note that the listing does not guarantee SEC approval, which remains a necessary step for final approval.

Despite the listing news, the SUI ETF has not seen significant price movements. The token briefly rallied by over 3% following the announcement but eventually retraced its gains. Investors are still awaiting the SEC’s decision, though there is growing optimism about the fund’s approval.

As of October 1, the SEC has not yet approved the SUI ETF. Analysts have placed the approval odds at approximately 60%, but recent developments in regulatory processes may increase the chances. “The SEC has streamlined its review process, which could speed up the approval,” said Bloomberg analyst Eric Balchunas.

Polkadot ETF Listed on DTCC’s Clearing List

The Polkadot ETF, listed under the ticker TDOT, also received its spot on the DTCC’s clearing list. This addition comes amid growing anticipation for crypto-linked ETFs. The listing means that operational groundwork is being laid in anticipation of SEC approval, although, like the SUI ETF, regulatory approval remains pending.

Polkadot’s ETF experienced a slight price increase following the DTCC listing, gaining nearly 2%. However, the price gains were short-lived, as market sentiment remained cautious. As with the SUI ETF, the broader market’s mood has been affected by the ongoing U.S. government shutdown, which has dampened risk appetite.

The approval chances for Polkadot’s ETF have been estimated at 90%. The SEC’s recent actions, such as withdrawing delays for other crypto ETFs, suggest that approval could be imminent. Balchunas noted that the adoption of new generic listing standards for crypto ETFs has significantly streamlined the process.

Regulatory Developments Boost ETF Approval Chances

The SEC’s recent regulatory changes offer optimism for the approval of crypto-linked funds. The SEC has removed many procedural bottlenecks, making it easier for issuers like 21Shares to get their funds listed. Balchunas believes that Solana will likely be the first to see approval, but many other crypto ETFs, including the Polkadot and SUI ETFs, could soon follow.

As the SEC accelerates its approval process, market participants are growing increasingly confident in the launch of crypto ETFs. While the market is currently subdued due to external factors, such as the U.S. government shutdown, the listing of these funds on the DTCC is seen as a positive sign.

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