SUI Drops Below $1 Despite Launch of First US Staking ETFs by Greyscale and Canary
The launch of the first US-listed ETF tied to the SUI was expected to mark a turning point for the token. Instead, the crypto fell below the $1 level, reflecting the gap between growing institutional access and weak market sentiment.
Related Reading
On February 18, asset managers Grayscale Investments and Canary Capital launched competing ETFs, offering investors exposure to SUI and big rewards. The products began trading on NYSE Arca and Nasdaq, bringing the Sui blockchain to US regulated markets.
Despite the milestone, SUI continued its decline, trading below $0.95 at the time of reporting after losing nearly 40% in the past month and extending a year-long decline.
SUI's price trends to the downside on the daily chart. Source: SUIUSD on Tradingview
Staking ETFs Introduce a New Investment Structure
The newly launched funds, GSUI and SUIS, differ from previous crypto ETFs by incorporating staking directly into their structure. Rather than passively tracking price movements, funds hold SUI tokens and hold a portion of their assets to generate network rewards, which are reflected in the funds’ total asset value.
This model allows investors to earn a yield without managing wallets or credentialing infrastructure. Analysts view the structure as part of a broader shift toward “yielding” crypto investment products that combine price exposure and blockchain participation.
ETFs also reflect growing institutional interest in the Sui Network, a layer-1 blockchain built by former Meta developers and designed for financial diversification, gaming, and digital market applications.
Weak Market Data Overcomes Institutional Momentum
Market indicators suggest that traders remain cautious despite the ETF launch. Derivatives data shows open interest fell by about 30%, indicating reduced speculative activity and less liquidity. Trading prices have also softened, reflecting lower participation compared to previous market cycles.
Network fundamentals have weakened in line with price action. The total value locked (TVL) in Sui’s DeFi ecosystem fell to around $565 million, returning to levels seen before last year’s market rally. Analysts say the drop in revenue has reduced the immediate impact of the facility’s development.
Technical indicators show the SUI consolidating close to key support between $0.88 and $0.90. Failure to hold this range could expose the token to deep losses towards $0.70, while recovery above $1.10–$1.20 would be required to signal a possible trend reversal.
Token Activation and Market Outlook
Additional pressure may come from the upcoming token launch scheduled for March 1, when approximately 43 million SUI tokens are expected to enter circulation. Increasing supply may introduce short-term volatility, especially if demand from incoming ETFs remains limited.
Related Reading
The launch of key ETFs represents a step forward in institutional adoption. However, SUI’s price action suggests that broader market conditions, revenue trends, and network growth will likely determine whether new products can translate into sustained returns.
Cover image from ChatGPT, SUIUSD chart on Tradingview
