21Shares seeks SEC’s nod for spot Sui ETF – How did the altcoin react?
Sui hasn't tapped the overhead $4 level yet.
- 21Shares was the second potential issuer to apply for a U.S. spot SUI ETF.
- SUI was above the key level for bullish continuation, but network activity cooled off.
21Shares, a $10 billion digital asset manager, has joined Canary Capital in the race for a U.S. spot Sui [SUI] ETF.
According to the S-1 form filing with the Securities and Exchange Commission (SEC), Coinbase will be the custodian for the proposed ETF.
Additionally, the proposed ETF share creations and redemption will be cash settled and not in-kind.
On the 17th of March, Canary Capital was the first to make a similar ETF submission. It remains to be seen whether the agency will acknowledge the applications.
21Shares partners with Sui
21Shares also announced a ‘strategic partnership’ to ‘expand global reach.’ In the statement, Duncan Moir, 21Shares president, said,
“Since our earliest research into Sui, we believed it could become one of the most exciting blockchains in the industry, and we’re seeing that thesis play out.”
The collaboration will include product partnerships, research reports, and other initiatives.
The updates saw the altcoin pump 9% on Thursday. However, the gains were swiftly erased as Bitcoin dominance climbed higher to 64.8%.
Overall, the altcoin’s +100% rally from April lows had cooled off as shown by ongoing consolidation around $3.5.
But the price consolidation was above the 200DMA (Daily Moving Average). Holding above the key technical level would allow bulls to push forward to the next resistance above $4.
However, the address activity signaled that SUI’s cool-off could extend for a while. The April recovery was marked by a sharp rebound in active accounts from 1.3 million to nearly 2 million.
But the metric sharply dropped at the end of April into May, to 1.1 million users. That’s a 45% drop in network activity. This could keep SUI sideways or dip it lower unless activity rebounds again.
