Cboe has filed paperwork with the SEC to push forward crypto asset manager Canary's plans for a SUI exchange-traded fund.

Launched in May 2023, the SUI blockchain is a layer-1 network meant to be an Ethereum and Solana competitor.

Nashville, Tennessee-based Canary Capital last month filed with the securities regulator as part of the first step to launch such a product.

With the latest step in the process, Cboe, the company that owns the Chicago Board Options Exchange, will await a response from the SEC on the proposed product.

Asset manager Canary has filed for a number of other altcoin ETFs, including funds that—if approved—would give investors exposure to Pudgy Penguins, Solana, and XRP. The appeal of crypto ETFs has been that they offer investors exposure to an asset without requiring them to buy and custody it themselves.

SUI was recently trading at $1.98, down slightly over the past 24 hours, according to data provider CoinGecko. With a market capitalization of $6.4 billion, it's the 22nd largest cryptocurrency. The SUI network, which was developed by former Facebook engineers, uses proof-of-stake consensus, like its major competitors SOL and ETH.

The network is home to projects like SatLayer, which offers Bitcoin staking, and it's also supported by the popular Bitcoin and Solana wallet, Phantom.

But the team has faced some challenges. In October last year, the Sui team refuted insider trading allegations after on-chain data seemed to suggest that a wallet linked to the Sui Foundation had profited $400 million after the SUI token experienced a rapid price hike.

And, like its competitor Solana, Sui has dealt with network outages. Activity ground to a halt for two hours in November while devs wrestled with a bug.

The SEC is currently mulling over paperwork from the likes of asset managers VanEck, 21Shares, Bitwise and others. Fund managers are hoping to get the green light for other digital coins and tokens following the success of the Bitcoin and Ethereum ETFs approved last year.

Edited by Stacy Elliott.