Europe-based ETF issuer 21Shares has opened a new chapter for Sui-linked investment products in the United States after receiving approval to list the first SUI-linked exchange-traded product. This launch comes as crypto ETFs continue to roll out across major exchanges, attracting continued interest from retail and institutional traders.
In brief
- 21Shares gains approval to list TXXS on Nasdaq, providing 2x daily exposure to the growing Sui blockchain ecosystem.
- Sui Activity Surpasses $10 Billion in 30-Day DEX Volume and Maintains Strong Growth in Stablecoin Transfers for Four Consecutive Months.
- SEC leverage limits hold TXXS at 2x as regulators halt higher exposure ETF proposals, impacting future product applications.
- FalconX acquires 21Shares as the company expands its range of crypto ETFs, including new products linked to Sui and Dogecoin.
Rapid rise in Sui business sets stage for new 21Shares leveraged ETF
The company introduced the 21Shares 2x SUI ETF (ticker: TXXS), which aims to return twice the daily performance of the Sui token. Nasdaq has approved the product for trading, providing US investors with direct access to a leveraged Sui strategy. CEO Russell Barlow said the launch reflects the growing interest in simple and accessible digital asset investment tools.
With this launch, 21Shares is capitalizing on one of the winners seizing the opportunity and ushering in the next era of blockchain technology—an era dominated by simplicity.
Russell Barlow
Sui is a decentralized cryptocurrency that runs on the Ethereum blockchain and uses a proof-of-stake system to process peer-to-peer transactions. Its native token covers fees, governance and staking. Network activity increased throughout 2024, placing Sui among the most active chains when it comes to decentralized trading and stablecoin transfers.
Institutional use of Sui in the United States has increased, according to Federico Brokate, global head of business development at 21Shares. He said that asset integrations like the stablecoin USDY are contributing to this growth. Brokate highlighted that TXXS offers traders a way to seek amplified exposure while keeping position size clear and transparent.
Several factors are now shaping the discussion around new financial products linked to Sui :
- Sui surpassed $10 billion in 30-day decentralized trading volume, placing it among the most active chains.
- Stablecoin settlements on the network exceeded $180 billion for the fourth consecutive month.
- Large financial institutions, including 21Shares and Canary Capital, have filed applications for Sui-based spot ETFs.
- US institutions have stepped up testing of Sui's infrastructure via stablecoin integrations.
- Regulators are reviewing rules related to ETF leverage limits as derivatives-related products gain popularity.
SEC Limits Keep TXXS at 2x as Leveraged Crypto ETF Launches in US
TXXS' arrival comes as the U.S. Securities and Exchange Commission continues to restrict higher leverage products, preventing several planned 3x and 5x ETFs from moving forward.
Under the current interpretation of Rule 18f-4, 2x exposure remains the upper limit for daily leverage funds. ETF.com reported that some issuers have attempted to structure portfolios to circumvent the rule's testing requirementsbut the SEC rejected these methods.
Eric Balchunas, senior ETF analyst at Bloomberg, noted that it is rare for a crypto asset to debut in the United States with a leveraged ETF as its first listing. TXXS becomes the 74th crypto-related ETF launched this year and the 128th registered. Analysts expect more filings to follow, given the recent pace.
21Shares has continued to expand its presence in the global crypto ETF market. The company filed for a Sui spot ETF in May as part of a partnership with the Sui team focused on research and development of new products. Around the same time, crypto trading firm FalconX acquired 21Shares for an undisclosed amount.
Growing competition in the ETF market shows that demand for digital asset products remains strong. With the launch of TXXS, attention turns to investor reaction to the first leveraged Sui ETF in the US market.
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