Grayscale Sui Trust Opens to Accredited Investors

It seems like every day Sui has some new big announcement. Given the fast growth of the project and its ecosystem, it’s easy to see why. Especially when you combine that with an active bull market. And one of the biggest recent stories is the Grayscale Sui Trust open for business in the US.

Let’s see what the Grayscale Sui Trust is about and why it’s a big deal.

The Trust

So first, what is the Grayscale Sui Trust? Like its other trusts for Bitcoin, Ethereum, and others, it’s an investment fund that invests in Sui. The big deal about it is that it’s a licensed, regulated product that anyone who qualifies can invest in with their dollars. More on the “anyone who qualifies” part in a second.

Before the Bitcoin and Ethereum ETFs, American institutions and investments only had the option of Grayscale for a way to invest in a licensed product that they could report back to shareholders and regulatory agencies with confidence. The Sui Trust in only a couple of months has $11 million in assets under management. The fund is now open to accredited investors in the US. And now that accredited investors can join in, this number will rise quickly. You can also see here that Grayscale charges a 2.5% management fee to manage this fund. All the fund details are available here.

What is an Accredited Investor?

As I said above, adding accredited investors will help this fund grow quickly. So what is an accredited investor? To be an accredited investor in the US, you need one of 4 things:

1. Net Worth. More than $1 million Excluding the value of your primary residence (that’s the catch for most people).
2. Income. Earned more than $200,000 in each of the last 2 years or combined $300,000 with your spouse or partner
3. Credentials. Certain licenses from FINRA like the Series 7 that allows you to become a stock broker, and others, allow you to be accredited based on your market knowledge
4. Specialized Knowledge. If you have specialized knowledge such as being an employee at a private fund, then you can be accredited based on that knowledge.

Now there is conflicting information out there but somewhere between 12%-20% of US households are accredited. That’s not a big number, mostly due to the assets aside from your personal home part.

But these people have money, specialized market knowledge, or both. That’s exactly the market, aside from the institutions to which Grayscale wants to sell this product. Before now, they couldn’t sell to these people and it was institutions only. Now the fully available market of institutions plus accredited investors is available for Grayscale to sell the Sui Trust.

Accredited investors are also known as HNWIs or High Net Worth Individuals.

So Which is Better? The Token or The Trust?

So if you qualify as an accredited investor, then that means you have a choice to make. That choice is between buying the Trust, or going direct and buying the $SUI token just like anyone else can.

And if you need to be in a licensed product like for an IRA or 401(k) plan, then the choice is clear. Do the Grayscale Sui Trust. And if you are lazy and don’t want to deal with setting up a wallet and all that, then same thing. Do the Trust.

But for most of us, including most of you reading this, you are better off getting a Sui-compatible wallet like the Sui Wallet and getting the token on your own.

And it’s not only about the control you have over your investment.

Recently, Bluefin and SuiLend, among others had airdrops. Both were successful for early adopters and the Bluefin airdrop in particular is for almost 20% of the total supply. We covered it extensively a little over a week ago. If you buy the Grayscale Trust, they are the custodial owner of the Sui, not you. They receive the airdrop benefits, not you. And if you are going to try out these platforms, then you should get the benefit right?

So even though most of us do not qualify or get any extra benefit, it’s still a big plus for Sui and its entire ecosystem that now any bank, institution, or accredited investor can take a position in Sui through the Grayscale Sui Trust. It’s bullish for institutional interest no doubt. Meanwhile, for the rest of us, keep stacking in your self-custody wallets and you’ll do great, too.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This post is sponsored by Sui.

Copyright Altcoin Buzz Pte Ltd.