SEC Approves First 2× Leveraged SUI ETF — Crypto Products Expand in U.S. Market

In a historic move for crypto markets, the SEC has greenlit a 2× leveraged ETF tied to SUI — a first in U.S. regulated markets for this kind of product. The ETF, launched by 21Shares, is designed to deliver twice the daily performance of the SUI token, using derivatives rather than direct coin holdings. 

The new tool will allow investors — through traditional brokerage accounts — to gain amplified exposure to SUI without navigating crypto exchanges directly. Given the leveraged structure, daily returns are magnified: a 5% rise in SUI could translate to roughly a 10% gain for TXXS, though losses will likewise be magnified. 

Supporters say this approval reflects growing regulatory acceptance, offering a regulated path for crypto participation. “We’re entering a new era of structured crypto products,” said 21Shares CEO. “TXXS opens crypto exposure to a broader investment audience under familiar rules.” 

But analysts also warn: leveraged ETFs are risky. Because they reset daily, returns over longer periods can diverge dramatically from expectations. In volatile markets — common in crypto — this could result in outsized losses if not managed carefully.

For the broader crypto ecosystem, the approval may encourage other providers to propose similar products — potentially expanding regulated alternatives beyond spot ETFs (like those for Bitcoin and Ethereum) into leveraged and derivatives-based instruments.

Meanwhile, some see this as a test: if leveraged crypto ETFs grow in popularity and regulatory acceptance, it could reshape how institutional and retail investors approach crypto exposure — blending traditional finance tools and digital assets.