SEC pushes 21Shares SUI ETF decision back to December

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed 21Shares SUI ETF, extending the review process into December 2025. In a filing published Thursday, the agency said it was “instituting proceedings” to determine whether the spot exchange-traded fund, which would be listed on Nasdaq, should be approved or rejected.

“The institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the SEC wrote. “Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”

The move prolongs uncertainty for crypto investors who have closely tracked the 21Shares SUI ETF application since its initial filing in May. If approved, the fund would give U.S. investors exposure to SUI, the native cryptocurrency of the Sui blockchain, through a regulated vehicle.

Extended timeline and next steps

The 21Shares SUI ETF was first filed on May 23, following an S-1 registration completed in April. The fund would track SUI’s price using a benchmark created by CF Benchmarks, with custody provided by BitGo and Coinbase Custody.

By July 22, the SEC had already extended its initial review under Section 19(b)(2) of the Securities Exchange Act, signaling that the agency was unlikely to make a swift decision. The latest development now sets the final statutory deadline around December 21, 2025, though the SEC could issue a decision earlier.

The timing may coincide with rulings on a broader slate of crypto ETFs, including applications tied to Solana, Cardano, and even Truth Social-branded Bitcoin and Ethereum funds. Analysts say this clustering of deadlines could reflect the SEC’s desire to take a coordinated approach to altcoin ETFs.

“Given the political and market sensitivities, the SEC may want to bundle several rulings together rather than issue them piecemeal,” said James Seyffart, ETF Analyst at Bloomberg Intelligence. “The 21Shares SUI ETF fits into that broader picture of how the agency is managing crypto’s integration into traditional markets.”

Investor sentiment and market impact

While delays often rattle markets, the latest news around the 21Shares SUI ETF had little effect on the underlying token. At press time, SUI was trading about 2% higher, suggesting investors had largely anticipated the SEC’s move.

For now, traders are more focused on how SUI’s fundamentals will evolve than on the ETF timeline. The Sui blockchain, known for its high throughput and developer adoption, has been positioning itself as a scalable alternative to Ethereum. Some analysts argue that ETF approval could accelerate institutional interest, though others caution against overestimating demand for altcoin-based funds.

“Investor enthusiasm for Bitcoin and Ethereum ETFs is clear, but it’s still an open question whether second-tier tokens will attract the same level of capital,” said Clara Medici, Senior Analyst at Chainalysis. “The 21Shares SUI ETF will be a test case.”

Regulatory backdrop under Trump administration

The delay also reflects a broader regulatory shift under President Donald Trump’s administration, which has pledged to replace “regulation by enforcement” with clearer rules for digital assets. On Wednesday, SEC Chair Paul Atkins unveiled the agency’s Spring 2025 agenda, which includes proposals to allow crypto assets to trade on national securities exchanges and alternative trading systems.

“A key priority of my chairmanship is establishing clear rules of the road for crypto assets,” Atkins said in a statement. “The 21Shares SUI ETF and similar applications are part of a larger effort to bring digital assets under the same regulatory fabric as traditional markets.”

For crypto investors, the prolonged review highlights both the promise and complexity of integrating altcoins into mainstream finance. While the SEC has made clear progress on Bitcoin and Ethereum ETFs, altcoin products like the 21Shares SUI ETF face higher scrutiny due to liquidity risks, market manipulation concerns, and evolving custody standards.

What’s next for crypto investors

As the 21Shares SUI ETF awaits its fate, market participants have until December to submit additional comments to the SEC. That feedback could shape the final outcome, particularly if investors and institutions stress the demand for diversified crypto exposure.

If approved, the 21Shares SUI ETF would mark the first U.S.-listed ETF tied directly to the Sui blockchain, potentially setting a precedent for other Layer-1 networks seeking regulated investment products.

For now, however, investors will have to wait through what could be a decisive fourth quarter for crypto ETFs. As multiple applications come due, the SEC’s stance on the 21Shares SUI ETF may serve as a bellwether for how far altcoins can advance in the regulated U.S. market.