Wall Street Enters Crypto’s Next Phase: SUI ETF Launch Meets Ethereum’s $17B Boom

Getting your Trinity Audio player ready...

• Institutions are expanding crypto exposure through ETFs, staking, and tokenized assets.
  
• SUI faces short-term pressure, but staking ETFs could support its ecosystem.
  
• Ethereum’s fundamentals are strengthening even as its price struggles.

Wall Street’s relationship with crypto is shifting fast. Instead of watching from the sidelines, major financial players are now entering the market through structured products, staking strategies, and tokenized assets. Recent developments around SUI and Ethereum highlight this evolving dynamic — one driven by long-term conviction even as prices struggle in the short term.

Grayscale’s SUI ETF Tests Institutional Appetite

The launch of a staking SUI ETF by Grayscale marks another step in institutional crypto adoption. Introduced on 18 February, the product aims to give investors exposure to SUI while also generating staking rewards — a model designed to blend passive investment with network participation.

The timing, however, is complicated. SUI has been one of 2026’s weakest performers, extending last year’s losses and erasing its post-election rally. Derivatives data shows declining trader interest, with open interest dropping sharply and liquidity thinning across markets.

Network fundamentals are also under pressure. Total value locked has retreated to roughly $580 million, and a sizable token unlock scheduled for early March could increase selling pressure. Without stronger demand, analysts warn that SUI could face deeper downside.

Still, staking ETFs could offer a lifeline. By attracting validators and long-term holders, they may help stabilize the ecosystem and encourage renewed DeFi activity.

Ethereum’s Quiet Strength Builds Behind the Scenes

While SUI struggles, Ethereum is telling a different story. More than half of ETH’s total supply is now locked in staking contracts, reflecting a growing commitment from long-term holders to secure the network rather than trade it.

At the same time, tokenized real-world assets on Ethereum have surged past $17 billion. Major financial institutions including BlackRock, JPMorgan, and Franklin Templeton are experimenting with blockchain-based financial products on the network.

Forecasts from firms such as Standard Chartered and ARK Invest suggest the tokenized asset market could grow into the trillions over the next decade — with Ethereum at the center of that expansion.

Further underscoring institutional confidence, Bitmine Immersion Technologies recently disclosed multi-million ETH holdings, signaling long-term belief in the asset despite market volatility.

Strong Fundamentals, Weak Prices

Despite these developments, ETH’s price recently slipped below $2,000 and remains under pressure. The divergence between fundamentals and market performance reflects broader caution across crypto markets.

Also Read: SUI Price Prediction: Will the New Grayscale ETF Trigger a 15% Rally Today?

For now, institutional adoption appears to be accelerating beneath the surface. Whether through staking ETFs or tokenized assets, traditional finance is steadily embedding itself into blockchain networks — even when prices fail to reflect that momentum.

Crypto’s institutional phase is no longer theoretical. Products like staking ETFs and large-scale tokenization initiatives show that traditional finance is building long-term exposure, not short-term trades. While market sentiment remains fragile, the structural shift toward institutional participation may ultimately define the next phase of digital asset growth.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.