10-Q: Grayscale Sui Staking ETF Q1 2026 Financial Results

Grayscale Sui Staking ETF reports Q1 2026 financial results, highlighting net asset growth driven by share creations despite SUI price depreciation.

Summary

• Net assets increased to $30.4 million as of March 31, 2026, from $4.3 million at year-end 2025.
• The Trust issued 2,186,000 shares during the quarter, bringing total outstanding shares to 2,398,900.
• Net decrease in net assets from operations was $3.6 million, primarily due to unrealized depreciation of SUI holdings.
• The Trust commenced staking operations on February 18, 2026, earning $44,000 in staking reward income.
• Sponsor fee was reduced to 0.35% effective February 18, 2026, with a partial fee waiver in effect until May 18, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral-to-positive development; while the Trust experienced unrealized losses due to market conditions, the successful uplisting and operational expansion into staking demonstrate institutional maturity.

Positives

• Significant growth in net assets and share count during the quarter.
• Successful commencement of staking operations, generating additional SUI rewards.
• Reduction of the sponsor fee to 0.35% enhances cost-efficiency for shareholders.
• Successful uplisting to NYSE Arca on February 18, 2026, providing improved market access.

Negatives

• Net decrease in net assets from operations of $3.6 million due to SUI price volatility.
• SUI price depreciated from $1.40 at year-end 2025 to $0.88 as of March 31, 2026.
• Realized losses on SUI sold to cover sponsor and staking fees.

Risks

• High volatility of SUI price directly impacts the Trust's net asset value.
• Operational and liquidity risks associated with staking, including potential delays in unstaking SUI.
• Dependence on third-party staking providers and custodians for asset security and validation.
• Regulatory uncertainty regarding the tax treatment of staking rewards and incidental rights.

Future Outlook

The Trust intends to continue its passive investment strategy, holding SUI and engaging in staking activities. The Sponsor expects to maintain the current fee structure and will continue to monitor Sui Network conditions and staking rewards. The Trust does not provide specific price targets for SUI.

Management Comments

• Management notes that the Trust is a passive entity and does not utilize leverage or derivatives.
• The Sponsor emphasizes that staking rewards are variable and not expected to be earned at a consistent rate.
• Management confirms that disclosure controls and procedures were effective as of the end of the period.

Industry Context

StockSavvy.ai notes that this filing reflects the broader trend of crypto-asset managers transitioning from OTC-traded trusts to regulated, exchange-traded products (ETPs) to improve liquidity and reduce premiums/discounts to NAV. The inclusion of staking rewards in an ETF structure is a competitive differentiator in the digital asset space.

Comparison to Industry Standards

• The 0.35% sponsor fee is competitive with other institutional-grade digital asset ETPs.
• The use of a multi-platform index for NAV calculation aligns with industry best practices for transparency.
• The transition to NYSE Arca listing follows the standard path for major crypto asset managers seeking broader institutional adoption.

Management Changes

Corporate Governance

Legal Proceedings

• No material changes to previously reported legal proceedings.

Related Party Transactions

• The Trust pays a sponsor fee and a sponsor staking fee to the Sponsor, which is a related party.
• Related parties held 40,962 shares of the Trust as of March 31, 2026.

Stakeholder Impact

• Shareholders benefit from the reduced sponsor fee and improved liquidity via the NYSE Arca listing.
• Authorized participants continue to facilitate the creation and redemption of shares.

Next Steps

• Continue staking operations on the Sui Network.
• Monitor the end of the fee waiver period on May 18, 2026.
• Ongoing management of share creations and redemptions.

Key Dates

Recommendation

The Trust is a passive vehicle tracking SUI; the recommendation is based on the underlying asset's performance rather than the Trust's operational efficiency, which is currently stable.

Keywords

Grayscale, Sui, SUI, Staking, ETF, Crypto, Digital Assets, GSUI