21Shares Files for Spot SUI ETF in the U.S., Partners with Sui Network
The proposed ETF Exchange-traded Fund At its core, blockchain is a digital chain of blocks, but not in the traditional sense. These 'blocks' consist of bits of information, and when we refer to a 'block' and 'chain,' we're talking about digital data stored in a public database. Blockchain provides an innovative way to transfer information automatically and securely. A transaction begins when one party creates a block, which is then verified by thousands, even millions, of computers across the network. This decentralized ledger of financial transactions is constantly evolving, with new data continuously added. What makes blockchain tamper-proof is that each record is unique, with its own distinct history. To alter one record would require changing the entire chain of millions of other records. Blockchain is grounded in three key principles: decentralization, transparency, and immutability.
According to the filing, the ETFs holdings will be secured by Coinbase, with daily net asset values (NAV) calculated using a benchmark index that reflects the spot market price of SUI. Notably, all share creations and redemptions will be handled in cash rather than in-kind transfers.
21Shares also announced a strategic partnership with the Sui network in conjunction with the ETF proposal. While other crypto ETFs have integrated staking features to generate passive returns, 21Shares stated that this fund will not stake any portion of its SUI holdings.
This move positions 21Shares as a frontrunner in bringing less-established blockchain assets to U.S. markets through regulated investment products, potentially paving the way for wider institutional adoption of the Sui ecosystem.
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Text source: Coindoo
