Bitwise Files First Spot SUI ETF with SEC, Marking Key DeFi Milestone

TLDR

Table of Contents

Bitwise’s filing with the SEC for a spot SUI ETF signals increased institutional interest in DeFi.
The SEC’s evolving stance on DeFi and new regulatory frameworks boost confidence in SUI’s growth.
The SUI ETF leverages staking and Coinbase Custody, addressing risks while offering yield opportunities.
SUI’s total value locked surged to $2.11 billion, signaling strong institutional backing and growth.

In a groundbreaking move, Bitwise has filed the first-ever spot SUI ETF with the U.S. SEC, marking a major step in DeFi’s institutional adoption. This filing signals growing confidence in Sui Network and reflects a maturing regulatory environment for digital assets. With strong institutional backing, Bitwise’s ETF aims to provide a regulated investment vehicle, offering exposure to SUI while addressing key risks such as staking and custody.

Bitwise Files Spot SUI ETF with SEC

Bitwise’s recent filing with the U.S. Securities and Exchange Commission (SEC) on December 18, 2025, marks an important development in the decentralized finance (DeFi) space. The proposal for the first-ever spot SUI ETF signifies a shift towards institutional adoption of blockchain networks, especially layer-1 blockchains like Sui Network.

This filing comes at a time when regulatory frameworks for digital assets have evolved, offering a clearer path for institutional participation. Bitwise’s move is expected to help bridge the gap between traditional financial products and the decentralized finance ecosystem.

🚨BULLISH: SPOT SUI ETF IS COMING!
Bitwise just filed with the SEC to launch a spot SUI ETF that tracks $SUI's real price directly.
It even plans to stake SUI inside the fund to earn extra yield for holders. pic.twitter.com/q21lBrQ8uz
— Coin Bureau (@coinbureau) December 21, 2025

As the first spot SUI ETF to be submitted to the SEC, Bitwise is aligning with increasing demand for digital asset exposure in a regulated manner. The decision to file reflects not only a response to market demand but also an opportunity to capitalize on the SEC’s evolving approach toward digital assets. While the regulatory environment has remained complex, the progress seen in recent years offers more clarity and support for institutional investors looking to engage with blockchain-based products.

Regulatory Shifts Strengthen Institutional Confidence

The SEC’s actions in 2025 have provided greater regulatory clarity, which has played a pivotal role in fostering institutional confidence. Specifically, the SEC issued no-action letters regarding decentralized finance and utility tokens, signaling a more accommodating stance. Alongside this, regulatory measures like the U.S. GENIUS Act and Europe’s MiCA regulation are helping to shape the global crypto framework.

For institutions, the regulatory clarity reduces risks and builds confidence in DeFi platforms like Sui Network. The SEC’s more transparent approach towards decentralized physical infrastructure networks has particularly benefitted startups and institutional investors alike. Bitwise’s filing of the spot SUI ETF takes advantage of this evolving regulatory landscape, ensuring that it aligns with both current regulations and market expectations.

Bitwise has addressed potential concerns surrounding the staking process within the SUI ecosystem. The SEC has shown particular interest in staking due to its risks around custody and transparency. Bitwise plans to use Coinbase Custody Trust Company for holding assets in cold storage and segregated accounts, ensuring that potential risks related to staking are mitigated while providing yield for investors.

Institutional Momentum Behind SUI’s Growth

The institutional interest in the SUI token has continued to grow steadily. As of the latest report, the total value locked (TVL) in Sui’s DeFi ecosystem surged 19.9% quarter-over-quarter, reaching $2.11 billion. This increase is attributed to significant integrations with major custodians such as Sygnum Bank and Fireblocks, underscoring the confidence large investors are placing in the Sui blockchain.

In addition to the growth in TVL, Sui has also established a $450 million digital asset treasury (SUIG). This move further highlights institutional backing and long-term commitment to the network. As the SUI ecosystem continues to evolve, Bitwise’s ETF offers a new way for investors to gain exposure to the token through a regulated product that aligns with market benchmarks.

By structuring the ETF using the CME CF Sui–Dollar Reference Rate, Bitwise ensures that the fund will track SUI’s spot price accurately. This approach also helps minimize tracking errors, a common concern for institutional investors. With the added benefit of in-kind creation and redemption mechanisms, the ETF is designed to offer improved liquidity, making it an attractive option for institutional investors seeking to tap into the DeFi market.

Future Outlook for DeFi and the SUI ETF

Looking ahead, the future of DeFi adoption in the institutional space is poised for significant growth. As the SEC continues to engage with industry participants and refine its regulatory stance, products like the SUI ETF are likely to gain approval and set a precedent for other digital asset products. The competition in the space is growing, with other players such as Grayscale and 21Shares also looking to introduce their own spot SUI ETFs.

In 2026, the crypto landscape is expected to evolve even further. Tokenized real-world assets and exchange-traded products (ETPs) are forecasted to become mainstream, offering new opportunities for institutional investors. As regulatory frameworks become more standardized globally, the adoption of DeFi products like the SUI ETF will likely expand, leading to broader acceptance of digital assets in institutional portfolios.