Forget Ethereum, there is a new Altcoin coming soon in the $10 trillion ETF industry.
Nasdaq and European cryptocurrency issuer 21shares applied for an exchange-traded fund in May that will hold $SUI, a relatively new coin from SUI's blockchain technology. Although XRP and Solana files are already in progress, the secret behind the SUI network is its focus on instant settlements, allowing unrelated transactions to be closed simultaneously. The Palo Alto, California-backed startup behind the technology is backed by Andreessen Horowitz and FTX Ventures, with a valuation of about $2 billion. $SUI has a market capitalization of about $11.5 billion, well below the $300.7 billion for famous coins such as Ethereum.
"SUI makes a differentiated bet on speed, developer adoption and novel architecture," said Mike Cahill, CEO of crypto developer Douro Labs. "Not to mention, ETFs provide the cleanest way to express this view under compliance constraints."
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$SUI has been traded in regulated exchange-traded products in Europe. 21shares Asui Fund has assets of approximately US$165 million, after about 10 months of transactions. “Once the custody and compliance boxes are ticked, there are real balance sheet requirements,” said Felix Xu, CEO of blockchain company ARPA Network. 21 shares said in a filing that $SUI tokens have four main use cases:
It acts as a liquid asset for applications or programs running on the SUI network.
Alternatively, coins can be used to pay for gasoline fees, charging users to process transaction fees on mobile on the blockchain.
Like other AltCoins, $SIU can be placed on the reward or used as a governance token.
"Pension funds, insurance companies, RIAS...these guys are not buying tokens on the chain," Xu told consultant Upside. “They want the stock symbol on the Nasdaq.”
Parallel execution: SUI Network's instant settlement means that in some cases it can be much faster than competing blockchains, which Xu says is great for gaming and high-frequency Fefi. He said daily active addresses are already in millions of dollars, while stable address liquidity is closing at a price of one billion dollars.
If that goes over your head, we simplify Xu: “In other words, this is not a ghost chain.”
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