Asset managers Canary Capital and Hashdex have both moved to broaden their cryptocurrency ETF offerings. Canary Capital has filed for a spot Sui ETF, marking its sixth crypto ETF application, while Hashdex has amended its existing ETF to include seven additional altcoins alongside Bitcoin and Ethereum. These developments come amid a shifting regulatory landscape, as firms anticipate a more favorable stance from the US Securities and Exchange Commission (SEC) following recent policy changes.
Canary Capital Proposes Spot Sui ETF in Sixth Crypto ETF Bid to the SEC
Canary Capital has filed its sixth cryptocurrency exchange-traded fund (ETF) application with US regulators, this time seeking approval for a fund tracking the spot price of the Sui (SUI) token. The move comes amid a growing wave of crypto ETF filings, fueled by optimism over potential regulatory shifts under a new US administration.
In a Form S-1 filing submitted to the Securities and Exchange Commission (SEC) on March 17, Canary Capital outlined its request to list the Canary SUI ETF. While details about the exchange on which it would be traded and its proposed ticker symbol remain undisclosed, the ETF would hold Sui (SUI) directly. This makes it one of the latest additions to the expanding list of crypto-based financial products seeking SEC approval.
The ETF application follows Canary’s March 6 registration of a trust in Delaware to facilitate the fund’s launch. However, before the SEC can make a formal decision on whether to allow the ETF to be listed, Canary must also submit a Form 19b-4, which would initiate the regulatory review process.
The Canary SUI ETF marks the firm’s sixth crypto ETF filing, continuing its aggressive push into the digital asset market. In recent months, Canary Capital has also filed applications for ETFs tracking the spot prices of Solana (SOL), Litecoin (LTC), XRP (XRP), Hedera (HBAR), and Axelar (AXL).
The trend of expanding crypto ETF filings aligns with a broader movement in the industry, as major financial institutions and crypto investment firms attempt to gain regulatory approval for exchange-traded products that provide mainstream investors with exposure to digital assets without requiring direct ownership.
Sui’s Partnership with World Liberty Financial and Political Tailwinds
The timing of Canary’s filing is notable, as it follows Sui’s March 6 partnership announcement with World Liberty Financial, a crypto-focused investment platform backed by US President Donald Trump. The collaboration will see World Liberty Financial include Sui in its “Macro Strategy” token reserve while exploring additional product development opportunities within the blockchain ecosystem.
The partnership could provide a strategic boost to Sui’s adoption, particularly given Trump’s pro-crypto stance. The president has vowed to ease regulatory restrictions on digital assets, a promise that has triggered a surge in ETF filings and heightened industry expectations that the SEC under a new administration may be more inclined to approve spot crypto ETFs.
The SEC has so far remained hesitant to approve additional crypto ETFs, despite earlier greenlighting spot Bitcoin ETFs in early 2024. The agency has delayed decisions on multiple pending applications, citing concerns over market surveillance and investor protection. However, optimism remains high within the industry, especially after SEC Commissioner Hester Peirce recently suggested that the agency is likely to defer any significant crypto-related decisions until Trump’s SEC Chair nominee, Paul Atkins, is confirmed by the Senate.
Atkins, known for his deregulatory approach, is expected to be more favorable toward crypto-related financial products. His Senate confirmation hearing is scheduled for March 27, following delays caused by financial disclosure concerns. If approved, his leadership could usher in a more crypto-friendly regulatory environment, potentially paving the way for multiple crypto ETF approvals in the months ahead.
Hashdex Expands Cryptocurrency Index ETF to Include Seven Altcoins Amid Regulatory Optimism
In other ETF news, asset manager Hashdex has revised its S-1 regulatory filing to expand its cryptocurrency index ETF, adding seven altcoins to its holdings alongside Bitcoin (BTC) and Ether (ETH). The move signals an acceleration in crypto ETF product rollouts amid the shifting regulatory attitudes toward digital assets.
In a March 14 filing with the SEC, Hashdex proposed adding Solana (SOL), XRP (XRP), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI) to its Nasdaq Crypto Index US ETF. As of March 17, the ETF had exclusively held BTC and ETH.
Earlier versions of the filing had left open the possibility of adding more cryptocurrencies but did not specify which assets would be included. The amended proposal now explicitly outlines the seven altcoins, marking a significant shift toward broader crypto market exposure within regulated financial products.
According to Hashdex, the added digital assets are “decentralized peer-to-peer computer systems that rely on public key cryptography for security, and their values are primarily influenced by market supply and demand.” This aligns with the firm’s objective of providing investors with diversified exposure to leading blockchain networks.
As part of the ETF’s expansion, Hashdex plans to switch its reference index from the Nasdaq Crypto US Index—which currently tracks only BTC and ETH—to the more comprehensive Nasdaq Crypto Index. This transition would enable the ETF to better reflect the broader cryptocurrency market.
However, the asset manager has yet to specify when the changes will take effect, as the SEC must first approve the amendments. If granted, the ETF would become one of the most diverse cryptocurrency index ETFs available to US investors.
The expansion of Hashdex’s ETF comes amid a broader industry push toward crypto index ETFs, which are gaining attention as the next phase of institutional cryptocurrency adoption. These funds offer investors a diversified, one-stop approach to crypto exposure, similar to how stock market indices like the S&P 500 function within traditional finance.
Hashdex and Franklin Templeton became the first asset managers to receive SEC approval for Bitcoin and Ethereum index ETFs in December, with both funds debuting in February. However, early inflows were modest, as investors awaited additional product offerings and regulatory clarity.
Meanwhile, Grayscale has also filed to convert its Digital Large Cap Fund into an ETF, further showing the growing institutional demand for diversified crypto investment vehicles. Created in 2018, Grayscale’s fund holds a multi-asset crypto portfolio, including BTC, ETH, SOL, and XRP.
According to industry analysts, crypto index ETFs represent the next logical step after the successful launch of spot Bitcoin and Ethereum ETFs. Katalin Tischhauser, head of investment research at crypto bank Sygnum, said in August that index ETFs offer investors a more efficient way to gain exposure to the crypto market.
SEC’s Stance on Crypto ETFs
While regulatory approval for additional crypto ETFs remains uncertain, the SEC has been actively reviewing over a dozen exchange filings related to digital asset funds. These proposals—submitted by Cboe and other exchanges—include rule changes concerning staking, options trading, in-kind redemptions, and new types of altcoin ETFs.
The SEC’s approvals of spot Bitcoin ETFs and spot Ethereum ETFs last year have encouraged further applications, with asset managers betting that the regulator will continue its incremental acceptance of cryptocurrency financial products.
Hashdex’s move to expand its Nasdaq Crypto Index US ETF is a major development in the regulated cryptocurrency investment landscape. If approved, the ETF would provide investors with diversified exposure to nine leading digital assets, further integrating crypto into mainstream financial markets.
As regulatory winds shift and institutional interest in cryptocurrency grows, the coming months could see more ETF issuers following Hashdex’s lead—paving the way for broader adoption of crypto index funds in traditional investment portfolios. For now, all eyes are on the SEC’s decision, which could set the tone for the next wave of digital asset ETFs in the United States.
