Canary and GrayScale launch SUI ETFs with US staking rewards

Expand the scope of investment

In a significant expansion of managed cryptocurrency investment products beyond Bitcoin and Ethereum, Canary Capital and Grayscale Investments have simultaneously launched the first US-listed spot ETFs tracking Sui's native token (SUI), complete with integrated staking yields.

Trading commenced on February 18, 2026, with the Canary Staking ETF (NASDAQ: SUIS) and the Grayscale Staking Sui ETF (NYSE Arca: GSUI) offering investors direct access to SUI along with a net staking reward of approximately 7%—reflected in the fund's net asset value (NAV)—marking a unique feature unprecedented in the US spot cryptocurrency ETF market.

This dual launch follows Canary's initial S-1 filing in March 2025 and Grayscale's conversion of its existing Sui Trust into an ETF structure, leveraging recent SEC approvals and the increasing institutional demand for proof-of-stake (PoS) networks. Sui, a high-throughput Layer-1 blockchain emphasizing scalability, low fees, and practical applications (e.g., gaming, DeFi, payments), has now gained access to mainstream exchanges – potentially driving widespread adoption in a volatile market environment.

The activity remains weak.

Despite initial positive factors, the SUI price fell below $1 in the trading session following its launch (down approximately 5-10% in early trading), reflecting the general weakness of altcoins, the dominance of BTC, and the "sell-off on bad news" sentiment. ETF trading volume remained modest.

• GSUI: 8,000 shares (nominal value $109,000).

• SUIS: 1,468 shares (nominal value $35,000).

The low initial purchase volume—described as "long-tail" trading—suggests cautious institutional participation amid macroeconomic pressures (record-high Global Uncertainty Index, geopolitical shifts). Analysts note that these products could appeal to allocators seeking yields over time, especially with the built-in staking feature.

How Staking Works in ETFs

For staking rewards to be viable in a tightly managed fund, managers must address the following issues:

• Validator selection and performance

• Risk of penalties (fines for misconduct or downtime)

• Network node uptime and infrastructure

• Reward distribution timing and reinvestment strategy

Canary and Grayscale's approach demonstrates they have developed a custodial-staking infrastructure that complies with US fund regulations—filling a crucial operational gap between on-chain participation and off-chain investor protection.

Our review

The launch of SUI ETFs by Canary and Grayscale, which incorporate staking rewards, represents a sophisticated advancement in cryptocurrency investment products. By combining regulatory exposure with on-chain economic participation, these funds broaden the meaning of investing in the blockchain ecosystem.

As a result, they help transform digital assets from speculative tokens into profitable infrastructure investments—potentially redefining institutional participation in proof-of-stake networks for years to come.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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