Grayscale launched a staking-focused exchange-traded fund for the Sui (SUI) cryptocurrency on 18 February. This institutional move comes as SUI has been one of the worst-performing major digital assets of 2026, with its price down 31% year-to-date and network activity cooling. Analysts question whether the new financial product can revive the token’s struggling DeFi ecosystem ahead of a major token unlock scheduled for 1 March.
Wall Street institutions are increasingly entering the cryptocurrency market, often through exchange-traded funds. Grayscale has now placed Sui on this radar with the launch of its GSUI staking ETF.
The launch’s timing is notable given SUI’s severe price depreciation. The altcoin has fallen 31% in 2026, erasing all its gains from a post-election peak of $5.35.
Speculative interest has also dwindled significantly alongside the price drop. Data from Coinglass shows SUI’s Open Interest declined by nearly 30%.
The new staking ETF represents a different approach compared to traditional products. It allows investors to earn rewards by participating in network validation, which could attract more validators.
This mechanism could potentially boost SUI’s decentralized finance activity. The network’s total value locked has already receded to approximately $580 million, back to pre-election levels.
The ecosystem faces immediate pressure from an impending supply increase. Analysts note that 43.35 million SUI tokens are scheduled to unlock on 1 March.
This token unlock may spark further volatility in the market. The prevailing technical setup suggests the asset may not absorb this new supply smoothly.
