8-K: 21Shares Sui ETF Terminates Benchmark License

21Shares Sui ETF is terminating its pricing benchmark licensing agreement with CF Benchmarks Ltd. and will transition to FTSE International Limited.

Summary

• 21Shares US LLC, the Sponsor of 21Shares Sui ETF, has notified CF Benchmarks Ltd. of its decision to terminate the Pricing Benchmark Licensing Agreement, effective August 31, 2026.
• This agreement was for the use of the CME CF Sui Dollar Reference Rate New York Variant, which is used to value the Trust's shares and calculate its net asset value.
• The Sponsor is transitioning to a new benchmark provider, FTSE International Limited (FTSE).
• A new licensing agreement with FTSE is expected to be entered into on or about August 24, 2026.
• FTSE will provide a perpetual, worldwide license to access and use FTSE index data for the development, creation, calculation, settlement, maintenance, support, and marketing of the Trust.
• The new license is expected to have an initial term of one year, with automatic renewal for successive one-year periods unless terminated.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. While the termination of a material agreement can introduce short-term operational considerations, the proactive transition to a new, reputable benchmark provider mitigates significant negative impact.

Positives

• The transition to a new benchmark provider indicates a proactive approach to managing the Trust's operations and potentially seeking improved data or services.
• The engagement of FTSE International Limited, an experienced index administrator, suggests a commitment to maintaining robust valuation and NAV calculation processes.
• The new licensing agreement is expected to be perpetual, providing long-term access to index data.

Negatives

• The termination of a material definitive agreement, even with a replacement in place, introduces a period of transition and potential operational adjustments.
• The reliance on a new, albeit experienced, benchmark provider introduces a degree of uncertainty until the new arrangement is fully operational and proven.

Risks

• Potential disruption to the daily valuation and net asset value calculation of the 21Shares Sui ETF during the transition period.
• The new licensing agreement with FTSE may have different terms or data quality compared to the previous agreement, potentially impacting the Trust's performance or investor perception.
• Unforeseen issues in the implementation of the new licensing agreement with FTSE could lead to operational challenges.

Future Outlook

The Trust will transition to using FTSE index data for its valuation and net asset value calculations, with a new licensing agreement expected to be in place by August 24, 2026, and effective upon the termination of the current agreement on August 31, 2026. The new agreement is expected to have a one-year initial term with automatic renewals.

Management Comments

• The Sponsor has elected to terminate the Pricing Benchmark Licensing Agreement pursuant to its terms in connection with its broader transition to a new benchmark provider.

Industry Context

StockSavvy.ai notes that the ETF industry frequently involves the reassessment and renegotiation of benchmark data providers to optimize costs, data quality, and operational efficiency. This move by 21Shares Sui ETF aligns with industry practices of adapting to new market offerings and provider relationships.

Stakeholder Impact

• Shareholders: Potential for minor short-term volatility if the transition is not seamless, but the long-term impact is expected to be neutral to positive if the new benchmark enhances data quality or reliability.
• Creditors: No direct impact anticipated as this is an operational change related to data provision.
• Suppliers: CF Benchmarks Ltd. will cease to be a supplier, while FTSE International Limited will become a new supplier.
• Employees: Operational teams involved in data management and NAV calculation may need to adapt to new systems and data feeds.

Next Steps

• Enter into a licensing agreement with FTSE International Limited on or about August 24, 2026.
• Transition to using FTSE index data for the Trust's valuation and net asset value calculations.
• Continue to operate the 21Shares Sui ETF under the new benchmark arrangement.

Key Dates

Keywords

21Shares Sui ETF, SEC Filing, Form 8-K, Benchmark Licensing Agreement, CF Benchmarks, FTSE International Limited, Sui Dollar Reference Rate, Net Asset Value, ETF, Sponsor