Wall Street isn’t just watching crypto anymore — it’s starting to participate. Even amid volatility, institutions are finding structured ways to access digital assets, and ETFs remain the favored gateway. The latest example: Grayscale launched a staking SUI ETF (GSUI) on 18 February 2026, putting Sui squarely on institutional radars. But can GSUI revive Sui’s struggling DeFi ecosystem? Where SUI stands now SUI has had a tough start to 2026. The token is down about 31% this year, on top of a 57% decline last year, effectively erasing all post-election gains from its $5.35 peak. Trading activity in derivatives has cooled as well — Coinglass data shows SUI Open Interest (OI) has fallen nearly 30%, suggesting traders are stepping back and liquidity may be thinning. Why the GSUI launch matters What makes GSUI notable is its staking feature. Unlike standard ETFs that simply track price exposure, staking ETFs allow investors to earn network rewards by effectively contributing stake through the fund. In theory, that could pull more capital and validators into Sui’s network, boost on-chain activity, and help rebuild confidence in the ecosystem — exactly what Sui needs given the current bearish environment and muted retail FOMO. Headwinds remain significant But the challenges are real. Sui’s fundamentals have weakened alongside its price: total value locked (TVL) has slipped to roughly $580 million, about where it stood before the election-driven rally. On top of that, a scheduled unlock of 43.35 million SUI tokens on 1 March 2026 could add downward pressure and spark volatility. Broader ETF flows have seen billions exit weekly recently, so Grayscale’s product faces an uphill battle to attract sustained inflows. Two possible paths forward - Bull case: If GSUI brings steady inflows and drives staking demand, validators and liquidity providers could be incentivized to re-engage. That would raise TVL, deepen DeFi markets on Sui, and potentially stabilize price pressure from the token unlock. - Bear case: If outflows continue and the unlock hits market supply while OI and liquidity stay low, SUI could face deeper corrections — analysts point to downside toward the $0.70 area if negative momentum persists. Bottom line Grayscale’s GSUI is an important development for Sui and highlights how Wall Street products can influence on-chain ecosystems. It could be a catalyst for renewed DeFi activity — but restoring fundamentals will likely require more than a single ETF launch, especially given looming token unlocks and weak market liquidity. Investors should watch inflows into GSUI, changes in staking participation, and TVL trends closely to judge whether the ETF can genuinely spark a revival. Disclaimer: This article is for informational purposes only and is not investment advice. Cryptocurrency trading is high-risk; do your own research before making decisions. Read more AI-generated news on: undefined/news
Article