Just as SUI was gaining institutional attention, the SEC has once again hit the brakes. On June 4, 2025, the U.S. Securities and Exchange Commission officially postponed its decision on the proposed Canary SUI ETF, leaving investors in limbo. The next deadline? July 24, 2025.
The delay comes at a delicate time for altcoin markets. SUI, which had shown strong upward momentum earlier in Q2, is now struggling to hold support near $3.20, down nearly 25% from its May highs. With ETF speculation priced in, the pause has triggered doubts about whether crypto adoption is really progressing—or being politically managed.
The Proposal: Canary’s Bid for a SUI ETF
The ETF in question was filed by Canary Digital Asset Management, proposing to list shares of the SUI Trust on the Cboe BZX Exchange. This would have made SUI the first Layer 1 altcoin launched in the 2020s to receive a U.S. spot ETF proposal.
According to the SEC memo, the delay is aimed at giving the Commission “adequate time to consider the proposed rule change,” including comments from the public and internal analysis.
While this may sound like standard procedure, multiple altcoin ETF proposals have faced repeated delays, suggesting the Commission is exercising caution—or stalling.
Market Reaction: SUI Drops on Uncertainty
Following the news, SUI dipped to $3.22, as seen in the TradingView daily chart. After weeks of positive sentiment and whale accumulation in early May, the token has now entered a downward consolidation phase. Key support levels rest near $3.00, with resistance at $3.85.
Source: Tradingview
Although no outright rejection has been issued, delays like this often weigh heavily on mid-cap tokens. Many investors had speculated that a spot SUI ETF could bring in significant institutional volume, helping the ecosystem stabilize against volatility.
ETF Politics: Is the SEC Playing Safe or Playing Slow?
This isn’t the first time the SEC has delayed decisions on crypto ETFs. In the past 18 months, proposals for Ethereum, XRP, Solana, and even Avalanche ETFs have been subjected to multiple rounds of review and comment periods.
Some insiders speculate that the SEC is buying time until post-election regulatory clarity, while others believe altcoin ETFs simply lack the volume and custody solutions to be approved in 2025.
Either way, projects like SUI are caught in the middle, forced to delay growth plans and ecosystem announcements while regulators hesitate.
Final Thoughts: What This Means for SUI and ETF Adoption
While the delay doesn’t equal rejection, it does serve as a reminder that crypto’s institutional breakout is far from guaranteed. SUI remains one of the most technically advanced L1 ecosystems, but it will need to prove its value beyond ETF speculation.In the short term, SUI price may continue to fluctuate between $3.00 and $3.60. Long term, the project’s fundamentals and dev activity still position it as a strong altcoin for 2025—but only if regulatory tailwinds return.
