Grayscale launches Sui Trust with $12.88M AUM, offering institutional access to SUI.
SUI price drops 12% despite Grayscale Trust, signaling potential volatility.
Developer activity in the SUI ecosystem declines, raising concerns about growth.
Grayscale Investments has launched the Grayscale Sui Trust, providing qualified investors a new route to gain exposure to SUI, the native token of the Sui blockchain.
As of December 18, 2024, the trust has assets under management (AUM) of $12.88 million, with each share tracking the SUI price, minus any associated fees. While the launch offers institutional-grade access to the SUI ecosystem, the SUI token itself faces recent price volatility.
The Grayscale Sui Trust is designed for institutional investors, enabling them to gain exposure to the SUI token without directly holding the asset. Shares of the trust are priced at $65.52 per share, reflecting the price of the SUI token minus expenses.
This offers a simplified way for investors to participate in the growth of SUI, which has seen impressive gains this year, including a 500% increase in value.
https://twitter.com/Grayscale/status/1869773955583869242
This new investment product tracks the price of SUI, which operates on a blockchain that focuses on scalability and cost efficiency. Grayscale’s move to launch the trust comes at a time when the SUI blockchain is ranked as the ninth-largest by total value locked (TVL) in decentralized finance (DeFi), though its DeFi TVL has recently experienced a decline.
Despite the optimism surrounding the trust’s launch, the price of SUI has faced challenges in recent days. The token saw a 12% dip in its value, falling to $4.13, with trading volume surging 108.96% to $3.1 billion. The price drop comes as the broader market reacts to the introduction of Grayscale’s Sui Trust, but its impact on SUI’s long-term price trajectory remains to be seen.
Developer activity within the SUI ecosystem has also declined. In December 2024, commit activity, a key indicator of developer engagement, dropped significantly to 950, down from a peak of 5,300 in May 2023.
The number of active core developers has also decreased from a high of 86 to 44. These metrics could reflect concerns about the pace of innovation and adoption on the SUI network, despite other positive indicators like stablecoin volume exceeding $377 million on the network.
While the SUI price faces immediate volatility, the launch of the Grayscale Sui Trust could help stimulate renewed interest from institutional investors. The SUI ecosystem continues to show promise, with decentralized exchanges like Cetus, Bluefin, and DeepBook reporting strong transaction volumes, indicating continued user interest.
However, the market will likely be watching closely to see if the institutional investment in SUI through the Grayscale Trust can help stabilize or drive the token’s price in the coming months.
