Switzerland-based issuer 21Shares has launched the first leveraged SUI exchange-traded fund (ETF) in the United States. The product trades under the ticker TXXS and began trading on the Nasdaq exchange following approval from the U.S. Securities and Exchange Commission (SEC). The ETF aims to deliver double daily exposure to the performance of Sui (SUI), the native asset of the Sui blockchain ecosystem.
First leveraged ETF tied to Sui ecosystem
21Shares, one of the largest global issuers of cryptocurrency exchange-traded products (ETPs), introduced TXXS to offer regulated exposure to the fast-growing Sui network. This ETF provides investors access to twice the daily returns of the Sui token without directly holding the underlying asset. The arrival of TXXS represents the first ETF linked to Sui and one of the few leveraged ETF products tied to any blockchain network.
Evan Cheng, co-founder and CEO of Mysten Labs, the original developer behind Sui, said the listing shows that institutional confidence in the network continues to strengthen.
“The arrival of a 2x leveraged SUI ETF reflects growing demand from both institutional and retail investors to engage with Sui in more dynamic ways,” Cheng said. “Seeing TXXS listed on Nasdaq is a vote of confidence in Sui’s long-term role in capital markets, and reflects how enhanced U.S. regulatory clarity can help bring new structured investment products to life.”
The launch follows 21Shares’ earlier filing for a spot SUI ETF, which remains under SEC review. Together, these products expand regulated investment access to the Sui blockchain for investors seeking exposure to blockchain assets through traditional vehicles.
Strategy, leverage structure, and regulatory backdrop
TXXS is a leveraged product designed to track 200% of the daily return of SUI, according to the company’s announcement. Leveraged ETFs typically use derivatives such as futures or swaps to amplify underlying performance. While this structure magnifies potential gains, it also increases potential losses.
The SEC has scrutinized leveraged crypto ETFs in recent months. According to ETF.com, regulators previously halted potential 3x and 5x leveraged crypto ETFs over concerns about elevated risk and compliance under Rule 18f‑4, the derivatives framework for investment companies.
“While 2x leverage had long been seen as the ceiling under Rule 18f‑4, some issuers believed there was a possible loophole in how the derivatives rule was written,” ETF.com noted.
The SEC clarified that portfolios cannot treat other instruments as substitutes for the underlying reference portfolio when calculating risk exposure.
Russell Barlow, CEO of 21Shares, said the new fund fits the company’s broader strategy to deliver structured access to emerging blockchain technologies.
“Widespread adoption of digital assets hinges on the market’s ability to offer consumers uncomplicated applications of the technology, and investors are eager to jump on products that amplify those investment returns,” Barlow said. “With this launch, 21Shares is capitalizing one of the winners rising to the occasion and ushering in the next era of blockchain technology – one dominated by simplicity.”
Sui network’s fundamentals and on-chain activity
Sui operates as a decentralized layer-1 blockchain using a proof-of-stake mechanism and an object-based architecture known for speed and scalability. The network hosts decentralized finance, gaming, and AI-driven projects. According to data from recent press materials, Sui processed over $10 billion in 30-day decentralized exchange volume and $180 billion in stablecoin transfer volume for the fourth consecutive month. These figures demonstrate continued growth in usage and institutional interest, especially from entities building enterprise-grade financial products on Sui.
Federico Brokate, global head of business development at 21Shares, said the firm sees Sui’s technology as a foundation for wider crypto adoption.
“Sui has seen a rapid growth of institutional adoption in the U.S., with enterprise-grade stablecoins like the U.S. Treasury-backed USDY already integrated on Sui,” Brokate said. “We’re excited about what the technology will mean for widespread adoption of crypto assets, and this launch gives investors the ability to maximize returns, leveraging positions in a transparent way.”
Institutional interest and market positioning
Bloomberg ETF analyst Eric Balchunas noted that it is uncommon for the first ETF linked to a crypto asset to be a leveraged product. Despite this rarity, the debut of TXXS marks the 74th crypto ETF to launch in 2025 and the 128th overall, according to Bloomberg data. “We expect another 80 in the next 12 months,” Balchunas said on X, referencing the momentum behind new digital asset ETFs worldwide.
Missed this earlier, 21Shares launched a 2x SUI ETF, first SUI ETF, rare first one is leveraged, happened with XRP too. They starting to add up now, this is the 74th crypto ETF launched this year and 128th overall. We expect another 80 in next 12mo. pic.twitter.com/VgQoAbNouX
— Eric Balchunas (@EricBalchunas) December 4, 2025
The arrival of TXXS occurs soon after the acquisition of 21Shares by the crypto trading firm FalconX. The merger gives 21Shares deeper access to trading infrastructure and liquidity. FalconX’s involvement aligns with 21Shares’ ongoing rollout of thematic leveraged ETFs, including recent products tied to Dogecoin.
Outlook for Sui-linked ETFs
The launch of the 21Shares 2x SUI ETF represents a milestone for both the issuer and the Sui ecosystem. Although leveraged ETFs cater mainly to sophisticated traders due to daily rebalancing and volatility risks, the product underscores the steady expansion of institutional-grade instruments tied to blockchain networks.
By adding TXXS to its lineup, 21Shares continues its effort to bridge the gap between traditional market structures and onchain asset exposure. For investors who want regulated access to Sui through a familiar exchange-traded format, the ETF introduces a unique tool for participating in one of the most scalable blockchain networks currently operating in the market.
Tanya Petrusenko
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