The debut of the first US-listed staking ETFs linked to SUI is expected to mark a turning point for the token. Instead, the crypto fell below the $1 level, showing the gap between growing institutional access and weakening market sentiment.
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On February 18, asset managers Grayscale Investments and Canary Capital launched competing spot staking ETFs, offering investors exposure to SUI as well as on-chain staking rewards. The products began trading on the NYSE Arca and Nasdaq, bringing the Sui blockchain to regulated US markets.
Despite this milestone, SUI continued its downward trend, trading below $0.95 at the time of the report, after losing around 40% over the past month and extending a broader annual 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 integrating staking directly into their structure. Rather than passively tracking price movements, funds hold SUI tokens in spot and stake a portion of their holdings to generate network rewards, which are reflected in the funds’ net asset value.
This model allows investors to earn yield without managing wallets or validator infrastructure. Analysts see the structure as part of a broader shift toward “yield-bearing” crypto investment products that combine price exposure with blockchain participation.
ETFs also signal growing institutional interest in the Sui Network, a layer 1 blockchain developed by former Meta engineers and designed for decentralized finance, gaming, and digital marketplace applications.
Weak market data overshadows institutional dynamics
Market indicators suggest traders remain cautious despite ETF launches. Derivatives data shows a drop in open interest of almost 30%, indicating reduced speculative activity and lower liquidity. Trading volumes have also slowed, reflecting lower participation compared to previous market cycles.
Network fundamentals have weakened alongside price performance. The total value locked (TVL) in Sui’s DeFi ecosystem has retreated to around $565 million, returning to levels seen before last year’s market rally. Analysts say the decline in capital inflows has limited the immediate impact of institutional developments.
Technical indicators show SUI consolidating support near the key between $0.88 and $0.90. Failure to maintain this range could expose the token to greater losses towards $0.70, while a recovery above $1.10 to $1.20 would be necessary to signal a potential trend reversal.
Token Unlocking and Market Outlook
Additional pressure could come from the next token unlock scheduled for March 1, when approximately 43 million SUI tokens are expected to enter circulation. Increased supply could introduce short-term volatility, particularly if demand from ETF inflows remains constrained.
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The launch of staking ETFs represents a structural step towards institutional adoption. However, SUI’s price action suggests that overall market conditions, liquidity trends, and network growth will likely determine whether new products can translate into a sustainable recovery.
Cover image of ChatGPT, SUIUSD chart on Tradingview
