A new entrant has appeared in America’s crowded crypto ETF landscape, and this time it centers on Sui — a blockchain that has been quietly racking up major usage metrics.
- 21Shares has introduced TXXS, a U.S.-listed ETF that provides 2x daily leveraged exposure to Sui.
- Sui’s rising on-chain activity and months of strong stablecoin settlement volume helped pave the way for the product.
- Regulators continue to cap leverage, blocking attempts at 3x and 5x crypto ETFs, making TXXS notable within current limitations.
Switzerland’s 21Shares has rolled out a product giving U.S. traders access to amplified Sui exposure, adding fresh momentum to the surge of digital-asset ETFs hitting regulated markets this year.
The fund, listed on Nasdaq under the ticker TXXS, is designed to double Sui’s daily moves. Instead of offering long-term exposure, the ETF functions as a leveraged instrument built for short tactical trades, marking a notable shift for the Sui ecosystem, which until now has only been accessible through spot holdings or on-chain participation.
Why Sui, and Why Now?
Sui’s rise has been one of the more unexpected storylines in the Layer-1 arena. Despite being a young network, it has consistently posted multi-billion dollar activity levels across DeFi platforms. The network has recorded more than $10 billion in decentralized exchange volume over the last month and has maintained massive stablecoin transfer activity for four straight months — data points rarely seen in newer chains.
These figures, combined with Sui’s proof-of-stake architecture and native utility across governance and staking, made the asset a candidate for a leveraged product aimed at traders who follow fast-moving emerging ecosystems.
21Shares had already signaled its interest earlier this year when it submitted a filing for a separate spot Sui ETF and entered into a collaboration with Sui’s developers to explore research and product frameworks.
21Shares’ Broader Strategy Takes Shape
The introduction of TXXS arrives shortly after 21Shares was acquired by institutional trading firm FalconX. The acquisition strengthened the company’s reach across liquidity networks, making it easier to introduce niche or high-velocity products. TXXS now joins the firm’s expanding list of specialized ETFs, which recently grew to include a leveraged Dogecoin vehicle.
For the U.S. ETF arena, the launch is unusual: most crypto ecosystems receive spot products long before any leveraged instruments are considered. Yet Bloomberg analyst Eric Balchunas noted that the industry is in the middle of an unprecedented expansion wave — 74 crypto ETFs have already gone live this year, and the total count stands at 128. Balchunas expects dozens more within the next 12 months.
Regulators Tighten Their Stance on High Leverage
Even as more products come to market, the regulatory outlook remains cautious. U.S. securities regulators have been reluctant to allow leverage levels above 2x in crypto ETFs. Several issuers recently attempted to launch 3x and 5x funds by exploiting technical interpretations of derivatives rules, but the SEC halted those efforts and clarified that such workarounds are not acceptable.
That makes TXXS one of the very few crypto ETFs operating at the maximum leverage currently tolerated by regulators.
What the Launch Means for U.S. Traders
With leveraged Sui exposure now available on a major American exchange, traders no longer need direct on-chain positions to attempt amplified returns from the network’s volatility. The arrival of TXXS effectively mainstreams Sui’s market presence, placing it beside larger crypto ETF categories traditionally dominated by Bitcoin and Ethereum.
As new products continue to surface at a rapid pace, Sui’s entrance into this environment signals that the next wave of ETFs may broaden far beyond the established digital assets.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/21shares-launches-first-u-s-leveraged-sui-etf/