10-Q: Grayscale Sui Staking ETF Reports Significant NAV Decline

Grayscale Sui Staking ETF's Q2 2026 report shows a substantial decrease in Net Asset Value driven by SUI price depreciation and share redemptions, alongside operational losses.

Summary

• The Grayscale Sui Staking ETF (GSUI) reported a net decrease in net assets of $4.543 million for the three months ended June 30, 2026, and $8.166 million for the six months ended June 30, 2026.
• This decrease was primarily driven by a net realized and unrealized loss on investment in SUI of $4.620 million for the three months and $8.264 million for the six months.
• The Net Asset Value (NAV) per Share decreased from $20.20 at December 31, 2025, to $10.07 at June 30, 2026.
• The Trust experienced significant share redemptions totaling $8.587 million during the three months ended June 30, 2026.
• SUI price depreciated from $1.40 per SUI at December 31, 2025, to $0.70 per SUI at June 30, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant decrease in the value of SUI and the resulting net loss from operations, despite some positive inflows from share creations.

Positives

• The Trust received contributions of approximately 4.05 million SUI ($3.767 million) in connection with share creations during the three months ended June 30, 2026.
• The Trust received contributions of approximately 35.61 million SUI ($33.490 million) in connection with share creations during the six months ended June 30, 2026.
• Staking reward income was $111 thousand for the three months and $155 thousand for the six months ended June 30, 2026.

Negatives

• The Trust experienced a net realized and unrealized loss on investment in SUI of $4.620 million for the three months ended June 30, 2026.
• The Trust experienced a net realized and unrealized loss on investment in SUI of $8.264 million for the six months ended June 30, 2026.
• The Net Asset Value (NAV) per Share decreased from $20.20 at December 31, 2025, to $10.07 at June 30, 2026.
• Share redemptions amounted to $8.587 million during the three months ended June 30, 2026.
• The price of SUI depreciated significantly from $1.40 per SUI on December 31, 2025, to $0.70 per SUI on June 30, 2026.

Risks

• The Trusts investment portfolio is concentrated in SUI, making its net asset value and results of operations directly affected by the price of SUI, which has historically been highly volatile.
• The Trust may experience significant fluctuations in net asset value, including periods of substantial losses.
• Concentration in SUI exposes the Trust to risks specific to SUI and its supporting infrastructure, including market liquidity constraints and operational or cybersecurity risks associated with the custody and transfer of SUI.

Future Outlook

The Trust currently intends to make mandatory cash distributions of net staking rewards on a monthly, but no less than quarterly, basis, starting after August 6, 2026. The amount of future distributions will depend on staking rewards earned and applicable deductions.

Management Comments

• The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees.
• As a passive investment vehicle, the Trusts investment objective is for the value of the Shares (based on SUI per Share) to reflect the value of the SUI held by the Trust, including SUI earned as Staking Consideration, determined by reference to the Index Price, less the Trusts expenses and other liabilities.
• While an investment in the Shares is not a direct investment in SUI, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to SUI.
• The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

Industry Context

StockSavvy.ai notes that the performance of the Grayscale Sui Staking ETF is highly correlated with the price movements of the underlying SUI token. The significant depreciation of SUI during the period, coupled with substantial redemptions, has led to a sharp decline in the ETF's Net Asset Value, reflecting broader volatility in the digital asset market.

Comparison to Industry Standards

• The filing does not provide direct comparisons to other specific ETFs or digital asset investment products in terms of performance metrics or operational efficiency.
• However, the trend of declining NAV due to asset price depreciation and redemptions is a common challenge faced by many digital asset-focused investment vehicles during periods of market downturn.

Legal Proceedings

• No material changes to legal proceedings reported since the last annual report.

Related Party Transactions

• The Trust pays a Sponsors Fee to Grayscale Investments Sponsors, LLC (the Sponsor) calculated as 0.35% of the aggregate value of the Trusts assets, less liabilities.
• The Trust pays a Sponsors Staking Fee to the Sponsor, which is a portion of the staking rewards.
• The Sponsor waived a portion of the Sponsors Fee from February 18, 2026, until May 18, 2026, or until the NAV exceeds $1.0 billion.

Stakeholder Impact

• Shareholders have experienced a significant decrease in the value of their investment due to the decline in SUI price and the Trust's net operating losses.
• The introduction of mandatory cash distributions of staking rewards may provide a more direct return to shareholders, but the amount is uncertain.
• The concentration risk in SUI means shareholders are highly exposed to the volatility of this single digital asset.

Next Steps

• The Trust will continue to stake a portion of its SUI to earn staking rewards.
• The Trust will continue to issue and redeem Shares in Baskets with Authorized Participants.
• Mandatory cash distributions of net staking rewards will be made to shareholders on a monthly, but no less than quarterly, basis, commencing after August 6, 2026.

Key Dates

Recommendation

The Grayscale Sui Staking ETF (GSUI) has experienced a significant decline in NAV due to SUI price depreciation and redemptions, resulting in a net loss for the period. While staking rewards provide some income, the overall performance is heavily tied to the volatile SUI market. The upcoming mandatory cash distributions of staking rewards could be a positive for income-seeking investors, but the inherent risks of a single-asset digital currency ETF warrant a cautious 'hold' recommendation until market conditions stabilize or the ETF demonstrates a more consistent positive performance trend.

Keywords

SUI, Staking, Grayscale, ETF, Digital Asset, Cryptocurrency, NAV, Exchange Traded Fund