VanEck, an investment firm that manages over $100 billion in assets, is adding Sui — a layer one blockchain designed by former Meta engineers— to its growing basket of crypto products.
Sui, launched in May 2023, is a blockchain that makes it easier for developers to deploy smart contracts and touts its ability to process multiple transactions simultaneously. It has managed to amass a market cap of $8.8 billion, climbing to the seventeenth-largest cryptocurrency since its launch just a year and a half ago.
CEO and co-founder of Mysten Labs— which developed the Sui network— Evan Cheng told Fortune that the new investment product is a vote of confidence in Sui’s technology as well as a sign that the traditional finance space is taking the nascent coin seriously.
“We’re really happy to be getting this recognition that we’re getting at this time. We’re really, really young, and we feel like we are now recognized as one of the leaders of the industry, which is quite incredible,” Cheng said.
Rather than an exchange-traded fund— some of which were approved in the U.S. this year for Bitcoin and Ethereum— the new Sui-based product is an exchange-traded note, which is only available in Europe.
An ETN is an unsecured debt note issued by a bank. While ETNs track the performance of an index, they do not own the underlying asset and do not pay dividends or interest.
VanEck has launched over a dozen crypto ETNs in select countries throughout Europe including those based on Bitcoin, Avalanche, Ethereum, and Solana.
“Sui’s proven track record and reputation as an industry leader, as well as its innovative and technological advancements, made this the next logical product to house in the portfolio,” Menno Martens, Crypto Specialist and Product Manager at VanEck, said in a statement.