Leading global issuer of cryptocurrency exchange-traded funds (ETFs) 21Shares recently added another altcoin-based investment product to its growing portfolio. The firm has launched the 21Shares 2x SUI ETF (TXXS) on Nasdaq.
US investors to get leveraged exposure to SUI
For the first time, US-based crypto enthusiasts can now get compliant, leveraged exposure to one of the fastest-emerging altcoins in the industry, SUI. According to data from Bloomberg, the TXXS is the 74th crypto ETF to launch in 2025 and the 128th ETF in all.
For the uninitiated, Sui is a scalable Layer-1 blockchain powered by the Move programming language. The smart contract platform claims to tackle the inefficiencies facing leading blockchain frameworks today. Commenting on the development, Russell Barlow, CEO of 21Shares said:
With this launch, 21shares is capitalizing on one of the winners rising to the occasion and ushering in the next era of blockchain technology – one dominated by simplicity. TXXS serves as a leveraged product providing investors with that access to the drivers of the future of the industry with the potential for amplified performance.
Similar sentiments were echoed by Evan Cheng, co-founder and CEO of Mysten Labs, one of the original contributors to the Sui blockchain, who noted that the arrival of a 2x leveraged SUI ETF indicates growing demand for the digital asset from both institutional and retail investors.
Per the official press release, Sui has emerged as one of the fastest-growing blockchains, recording more than $10 billion in 30-day decentralized exchange (DEX) volume, ranking seventh among all blockchains.
In addition, it has processed over $180 billion in stablecoin transfer volume for the fourth consecutive month. The network’s native token, SUI, is used for governance, paying transaction fees, and staking.
Bloomberg senior ETF analyst Eric Balchunas took to X to share his thoughts on the launch of the first 2x SUI ETF in the US. He noted that it’s “rare” for the first ETF for an altcoin to be a leveraged one but later clarified that it happened with the XRP one as well.
Are altcoin ETFs going to outshine Bitcoin ones?
Following the approval of the first US-based spot Bitcoin back in January 2024, a flurry of altcoin-based spot ETFs have popped up. Ethereum-based ETFs have already amassed net assets worth more than $19 billion to date, according to data from SoSoValue.
In addition, other altcoin-focused ETFs are also witnessing growing demand from both institutional and retail investors. For example, recently the SEC approved XRP and Solana ETFs, resulting in significant inflows worth billions of dollars into both the financial products.
The growing significance of altcoin-based ETFs was highlighted in the recently concluded Binance Blockchain Week, in a panel discussion involving Binance co-CEO Richard Teng, Solana Foundation President Lily Liu, and Ripple CEO Brad Garlinghouse.
