Grayscale Sui Staking ETF Annual Report - How They Did This Year

I’ve put together a simple guide to help you understand how the Grayscale Sui Staking ETF (GSUI) performed this past year. Think of this as a plain-English breakdown of what’s happening under the hood so you can decide if it’s the right fit for your portfolio.

1. What does this fund do?

The Grayscale Sui Staking ETF gives you exposure to the Sui (SUI) digital asset. The big news this year is that the fund moved to the NYSE Arca exchange on February 18, 2026.

The fund’s main goal is to track the price of SUI. It also engages in "staking." Think of this like a high-yield savings account where the fund locks up its tokens to support the network in exchange for extra rewards. As of December 31, 2025, the fund held about 12.4 million SUI tokens. By participating in the network, the fund earns staking rewards. It converts these rewards into more SUI tokens, which grows the fund’s holdings before management fees are taken out.

2. Financial Performance & Health

The fund’s value is tied directly to the price of SUI. It doesn't "make money" like a traditional business; its performance is simply the price of the SUI it holds, minus the costs to run the fund. The fund charges an annual management fee of 2.50%, which is taken from the fund’s assets daily.

A major improvement this year is the fund’s ability to track the actual price of SUI. Before moving to the NYSE, the fund traded on the OTCQB market, where it often suffered from "price disconnects." Late in 2025, the share price sometimes traded at a 38% premium or a 30% discount compared to the actual value of the SUI held. Since moving to the NYSE, the fund has used a process that allows large investors to exchange SUI for shares. This keeps the market price within 0.5% to 1% of the actual asset value, significantly reducing price swings.

3. Key Risks

Investing in this fund is speculative. Here are the biggest hurdles:

• Extreme Volatility: SUI is a rollercoaster. You could lose all or most of your money if the price crashes. In 2025, SUI dropped over 40% in single months, which directly hit the fund's value.
• Staking Risks: Staking locks up tokens, making them inaccessible for a time. There is also a risk of "slashing," where the network penalizes the fund by taking tokens if the validator node acts maliciously or goes offline.
• Regulatory & Tax Uncertainty: The government is still figuring out how to tax digital assets. You might owe taxes on staking rewards even though the fund doesn't pay them out to you in cash. This is often called "phantom income."
• Operational Risks: The fund relies on third parties, like Coinbase Custody, to hold assets and manage staking. If these partners have issues, the fund could be forced to shut down. Insurance coverage is limited and may not cover the full value of the SUI if a major security breach occurs.
• No Governance Rights: Owning SUI through this fund gives you no say in how the Sui network is run. Grayscale keeps all voting rights.

4. Future Outlook

The fund is now on a major exchange, which has helped stabilize its pricing. Its future depends entirely on the adoption of the Sui blockchain. If the network grows, your investment could grow. However, the fund remains at the mercy of the digital asset market and new government rules. Management is focused on using staking rewards to offset the 2.50% fee. Future performance will depend on how many people use the Sui ecosystem.

Note: This report is based on the 2025 Annual Report. Past performance is not a guarantee of future results. Before investing, consider whether you are comfortable with the high volatility of digital assets and the specific risks associated with staking.