Grayscale Sui Staking ETF (NYSE: GSUI)

Grayscale Sui Staking ETF is a Delaware Statutory Trust that was formed on April 30 2024. The Trust holds Sui tokens which are digital assets created and transmitted through the peer to peer Sui Network. Its purpose is to provide investors with a convenient way to gain exposure to Sui while the Trust manages custody and administrative functions. The Shares of the Trust represent fractional undivided beneficial interest in the Trust and are listed on NYSE Arca under the ticker GSUI. As a passive investment vehicle the Trust does not seek to outperform the price of Sui but aims to reflect its value less expenses. The Trust commenced staking of its Sui holdings after uplisting to NYSE Arca on February 18 2026. Prior to listing the Trust issued Shares to accredited investors through private placements in exchange for Sui deposits. The Trust agreement requires the Sponsor to calculate and publish the net asset value each business day at 4 00 p m New York time. The Trust does not employ leverage derivatives or any similar arrangement in pursuit of its investment objective. The Trust is intended to be a grantor trust for U S federal income tax purposes.

Grayscale Sui Staking ETF generates revenue primarily through the Sponsor's Fee that is paid by the Trust to its sponsor Grayscale Investments Sponsors LLC. The fee is calculated as a percentage of the Trust's net asset value and is accrued daily. The current Sponsor's Fee rate is disclosed in the Trust's prospectus and is subject to change with sponsor approval. This fee compensates the sponsor for services such as administration custody oversight marketing and regulatory reporting. Investors effectively bear the cost as it reduces the net asset value per Share over time. In addition the Trust may receive staking rewards which increase the total Sui holdings but are not recorded as revenue on the income statement. Staking rewards are distributed to shareholders periodically or may be retained in the Trust to further increase the net asset value. The Trust does not engage in active trading or derive income from price speculation or speculative strategies. All expenses of the Trust are covered by the Sponsor's Fee or by the sale of Sui when necessary to meet obligations. The Trust's revenue model is therefore straightforward and transparent to investors.

The company operates as a single business unit with no distinct operational segments. All activities related to share creation redemption custody and staking are managed within the Trust structure.

Grayscale Sui Staking ETF operates in the niche of exchange traded products that provide direct exposure to a single digital asset. It competes with other crypto trusts and ETFs such as Grayscale Bitcoin Trust Bitwise Ethereum ETF and various spot bitcoin ETFs that have entered the market. Its competitive advantage lies in the combination of secure cold storage provided by Coinbase Custody Trust Company LLC and the ability to stake Sui tokens to earn additional returns. The Trust also benefits from transparent daily net asset value publication and a straightforward creation and redemption mechanism through authorized participants. These features aim to lower friction for investors seeking Sui exposure compared with self custody or third party platforms. The Sponsor has a long standing reputation in the digital asset investment space which adds credibility to the product. The Trust's structure as a grantor trust avoids certain regulatory complexities associated with registered investment companies. While the product is relatively new it leverages the Sponsor's existing infrastructure for custody and reporting. Market participants view the Trust as a convenient way to obtain Sui exposure without needing to manage private keys or navigate unregulated exchanges. Overall Grayscale Sui Staking ETF aims to differentiate itself through security simplicity and the potential for staking yield.

The Trust serves a broad range of investors who want exposure to Sui without the complexities of direct token ownership. This includes retail investors who prefer a regulated exchange traded product and institutional investors who seek a custodial solution for digital assets. Accredited investors participated in private placements before the Trust's uplisting to NYSE Arca. After uplisting the Shares are available to any investor with a brokerage account that can trade on NYSE Arca. The product appeals to those who desire a simple way to gain Sui exposure while benefiting from professional custody and potential staking rewards. Financial advisors may recommend the Trust to clients looking for a diversified allocation to emerging blockchain assets. Some investors use the Shares as a tactical tool to gain temporary exposure to Sui during periods of market optimism. The Trust does not target any specific geographic region and its Shares are accessible to investors worldwide subject to local regulations. Although specific customer names are not disclosed the investor base comprises individuals family offices and asset managers. The Trust's transparent fee structure and daily NAV updates help build trust with its varied audience.