Crypto asset manager Grayscale Investments has launched a new exchange-traded product (ETF) focused on the Sui ecosystem. The Grayscale Sui Staking ETF, ticker symbol “GSUI,” will begin trading on the NYSE Arca tomorrow. The fund offers investors direct exposure to the SUI token price while also providing the opportunity to earn staking returns. GSUI differs from classic spot crypto ETFs in that it not only holds SUI tokens but also aims to generate additional income by staking these assets on the Sui network. This allows investors to benefit from staking rewards stemming from both price increases and the network verification process. The ETF has a management fee of 0.35%, but it has been announced that this fee will be waived for the first three months or until the fund size reaches $1 billion. This move aims to attract institutional investors and individual investors looking for early positions. The fund also features notable collaborations on its operational side. While custody and prime broker services are provided by Coinbase, Bank of New York Mellon handles administrative and transfer services. Liquidity is expected to be supported by major market makers such as Jane Street and Virtu. This structure allows GSUI to operate integrated with traditional financial infrastructure. Grayscale stated that the fund is not registered under the Investment Corporation Act 1940 and therefore is not subject to the same regulatory framework as classic ETFs. The company specifically noted that the investment carries significant risks, is susceptible to high volatility, and could result in the loss of the entire principal. It was also emphasized that GSUI does not directly represent an investment in SUI tokens.
The staking-focused ETF model marks a new era in the crypto market. While Bitcoin and Ethereum spot ETFs have recently come to the forefront, products offering staking returns have remained limited. GSUI fills this gap, offering investors the potential for two-way returns. This creates a compelling alternative, particularly for investors seeking passive income.
What is the current price of SUI?
On the other hand, there is a development that could put pressure on the SUI price in the short term. Approximately 43.35 million SUI tokens will be unlocked on March 1, 2026. This process, known as token unlocking, can trigger selling pressure because it increases the circulating supply. It is known that similar unlocks in the past have been followed by price pullbacks.
SUI's market capitalization is currently around $4 billion, and the token has experienced a significant loss in value over the past year. This indicates that investor sentiment remains cautious. In the next 30 days, it is expected that not only SUI but also a total of over $900 million worth of tokens from various projects will enter circulation. This development could affect overall liquidity in the altcoin market. The SUI price is currently trading between $0.9 and $1.
While Bitcoin dominance hovers around 58%, indicating a relatively balanced market, the increase in altcoin supply is being closely monitored. GSUI's initial trading volume and price performance will be crucial in measuring institutional demand for both SUI and staking-based ETFs.
