Bitwise has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch a spot SUI exchange-traded fund (ETF). The proposed ETF, named Bitwise Sui ETF, aims to track the price of SUI, the native token of the Sui network, offering investors exposure to the token without directly holding it. Coinbase will act as the custodian for the fund.

This move positions Bitwise as the fourth asset manager seeking to offer a spot SUI ETF, joining Grayscale, 21Shares, and Canary Capital in the race. Grayscale filed its S-1 earlier this month, while 21Shares and Canary Capital submitted their filings earlier in the year. The SEC recently approved a 2x leveraged SUI ETF from 21Shares.

The Bitwise Sui ETF will offer 100% spot exposure to the SUI token. Bitwise intends to offer staking for the SUI ETF, which will generate additional tokens. The asset manager will also offer in-kind creations and redemptions for the fund, enabling direct transactions with the token instead of using cash.

Bitwise has not yet disclosed the ticker symbol for the fund or the exchange it will be listed on. The filing also leaves the sponsor's annual management fee blank.

The SEC will review the S-1 filing and may request amendments or clarifications before making a decision. Historically, the SEC has been cautious about approving spot crypto ETFs for assets beyond Bitcoin and Ethereum. The regulator will likely scrutinize Sui's market structure, liquidity, and potential for manipulation before granting approval.

Bitwise is an experienced player in crypto index funds and was among the issuers of spot Bitcoin ETFs. The firm already offers spot products for Bitcoin, Ethereum, Solana, XRP, and Dogecoin. The SUI ETF filing signals a strategic expansion into layer-1 blockchains. Bitwise also added SUI to its 10 Crypto Index ETF on the New York Stock Exchange.

The SUI token was launched in mid-2023 and is currently the 31st largest cryptocurrency by market cap. An ETF for SUI could drive significant demand for the asset.