Canary Capital and Grayscale will launch exchange-traded funds (ETFs) based on Sui (SUI), The Block reported on Tuesday.

Canary Capital's Canary Stake Sui ETF (SUIS) will be listed on Nasdaq, track Sui's spot price and be designed to generate additional returns through staking. Canary Capital CEO Steven McClurg said its differentiator is that it offers direct exposure to Sui and staking returns through a registered ETF structure.

On the same day, Grayscale also converted its existing Sui trust into an ETF and listed it on NYSE Arca under the GSUI ticker. Sui is a layer-1 blockchain developed by Mysten Labs, and its native token SUI is used to pay transaction fees and execute smart contracts. Its market capitalisation is currently about $3.7 billion, ranking 31st.

Earlier, ETF issuer 21Shares launched a 2x leveraged product, the 21Shares 2x Sui ETF, last year.

Mysten Labs co-founder Adeniyi Abiodun said this ETF launch is an important milestone that expands access to the Sui ecosystem for institutional and retail investors. He said Sui will become the foundation for a new global economy and that the listing will help raise confidence in the technology.