# 21Shares Sui Staking ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/21Shares Sui Staking ETF).

## Overview

21Shares Sui Staking ETF is a Delaware statutory trust that issues exchange-traded shares representing fractional interests in assets primarily consisting of SUI, the native token of the Sui blockchain. The ETF seeks to track SUI through a reference price while potentially staking part of its holdings to generate staking rewards, and its shares trade under the ticker TSUI.

## Products & services

• Exchange-traded TSUI shares
• SUI token price exposure
• SUI staking and reward generation
• Daily NAV calculation and valuation
• Creation and redemption baskets

- **SUI investment exposure** (90%) — The Trust holds SUI to provide exchange-traded exposure to the token's market value.
- **Staking rewards** (10%) — A portion of SUI holdings may be delegated for staking to generate rewards for shareholders.

- Exchange-traded TSUI shares
- SUI token price exposure
- SUI staking and reward generation
- Daily NAV calculation and valuation
- Creation and redemption baskets

## Customers

The ETF is designed for investors seeking SUI exposure through a regulated securities-market vehicle rather than direct token custody. Its customer base can include retail investors, financial advisers, institutions, and authorized participants that create or redeem shares using SUI or cash. Investors may also value the operational convenience of third-party custody, daily NAV calculation, and potential staking distributions.

- **Retail investors** (primary) — Buy TSUI shares for SUI exposure through a brokerage account without directly managing token custody.
- **Financial advisers** (primary) — Use the listed ETF structure to allocate client portfolios to SUI within conventional securities accounts.
- **Institutional investors** (secondary) — Obtain SUI exposure through an exchange-traded product with external custodians and formal reporting.
- **Authorized participants** (secondary) — Create and redeem shares in baskets, supporting primary-market liquidity and helping align price with NAV.

- Retail investors seeking exchange-traded SUI exposure
- Advisers using TSUI in client portfolios
- Institutions seeking blockchain-asset exposure
- Authorized participants creating and redeeming ETF shares
- Crypto-focused investors seeking potential staking rewards

## Geography

The Trust is organized in Delaware and its shares trade on a U.S. exchange under the ticker TSUI. SUI is a global digital asset, while custody is provided by Coinbase, Anchorage, and BitGo and administration and cash custody are provided by Bank of New York Mellon. The Sui Foundation, a Cayman Islands foundation company, was the initial seeding investor.

- Delaware statutory trust and U.S.-listed ETF structure
- TSUI shares trade on a U.S. exchange
- SUI exposure is linked to a global digital-asset market
- Custody is provided by Coinbase, Anchorage, and BitGo
- Initial seeding came from a Cayman Islands foundation

## Strategy

The Trust's core strategy is to track SUI while using staking to potentially enhance shareholder returns after fees. Its staking model balances expected rewards against liquidity and redemption requirements, generally targeting 70% to 90% of SUI holdings for staking, although the actual level may vary. The Sponsor also manages pricing-benchmark and custody arrangements that support reliable daily NAV calculation and ETF operation.

- **Optimize SUI staking utilization** (short-term) — Higher staking participation may generate rewards, but excessive staking can constrain redemption liquidity.
- **Preserve ETF liquidity and operating functionality** (medium-term) — Efficient creations, redemptions, custody, and valuation are necessary to keep TSUI usable as a listed product.
- **Maintain benchmark-based valuation** (short-term) — A dependable pricing benchmark supports daily NAV calculation and investor confidence in the ETF.

- Maintain direct SUI exposure through the ETF structure
- Stake a target 70%-90% of holdings when liquidity permits
- Balance staking yield against redemption liquidity needs
- Use third-party custodians to control token custody risks
- Maintain a reliable benchmark for daily NAV calculation

## Risks

TSUI is highly exposed to SUI price volatility because its assets are concentrated in one digital token; the Trust's NAV declined materially when SUI prices fell during its initial operating period. Staking introduces liquidity, validator, operational, and regulatory risks because staked assets may not be immediately available for redemptions. The Trust also depends on custodians, benchmark providers, market infrastructure, and a legal structure that limits certain shareholder derivative claims.

- **SUI market volatility** [critical] — The Trust primarily holds SUI, so changes in the token price directly affect NAV and investor returns.
- **Staking liquidity and operational risk** [high] — Staked SUI may face unstaking delays or operational interruptions when the Trust needs assets for redemptions.
- **Custody and private-key risk** [high] — Loss, theft, insolvency, or operational failure at a custodian could limit access to the Trust's SUI.
- **Regulatory and tax uncertainty** [high] — Changes affecting digital assets, staking, grantor-trust status, or ETF regulation could impair the product's structure or economics.
- **Benchmark and valuation risk** [medium] — Errors, disruption, or licensing changes involving the SUI pricing benchmark could affect NAV calculation and investor confidence.
- **Limited shareholder legal remedies** [medium] — The Trust Agreement requires certain claims affecting shareholders proportionately to be brought derivatively.

- SUI price volatility can drive substantial NAV declines
- Concentrated exposure provides little asset diversification
- Staked SUI may be less liquid during redemptions
- Custodian failures could impair access to token holdings
- Regulatory changes could restrict staking or ETF operations
- Shareholder derivative-action limits may constrain legal remedies

## Accounting

The Trust values SUI using fair-value principles under ASC 820, with financial-statement values based on the price in its principal SUI market. Its operating NAV uses the Pricing Benchmark, while GAAP Principal Market NAV uses the principal-market price, so the two measures can differ. Staking rewards, Sponsor Fees, Staking Fees, token sales for redemptions, and distributions affect reported investment income, realized gains or losses, and net assets.

- **SUI fair-value measurement** — Token price movements flow directly into unrealized gains or losses and net assets.
- **Operating NAV versus Principal Market NAV** — Differences between pricing sources can produce temporary NAV and financial-statement valuation differences.
- **Staking reward recognition** — Reported income reflects both blockchain rewards and the costs of generating them.
- **Redemption-related token sales** — Investor flows can affect reported realized results independently of market-price changes.
- **Sponsor Fee accrual** — Fee expense varies with Trust NAV and reduces assets available to shareholders.

- ASC 820 fair value drives reported SUI investment values
- Principal Market NAV can differ from operating NAV
- Staking rewards are recorded net of related fees
- Token sales for redemptions create realized gains or losses
- Sponsor Fee accrues daily at 0.30% of NAV
- Benchmark changes are applied prospectively

---

*Last updated: 2026-09-24T12:24:31.847956+00:00*