Canary Capital has officially filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an ETF (Exchange-Traded Fund) featuring the PENGU token and Pudgy Penguins NFTs. If approved, this will be the first-ever fund of its kind, centered around a meme token and an NFT collection.
ETF Composition and Features
According to the filing, the fund will include:
- PENGU token — A digital asset within the Pudgy Penguins ecosystem, launched in December 2024.
- Pudgy Penguins NFTs — A popular Ethereum-based NFT collection.
- Other digital assets — Including Ethereum (ETH) and Solana (SOL), which will be used for transactions involving PENGU and Pudgy Penguins NFTs.
The Growing Trend of Crypto ETFs
Canary Capital is not alone in pursuing ETFs based on alternative digital assets. In recent months, various firms have filed applications for ETFs based on Solana (SOL), XRP, Dogecoin (DOGE), Litecoin (LTC), and even lesser-known cryptocurrencies such as Sui and Hedera
Following the approval of spot Bitcoin (BTC) ETFs in January 2024 and Ethereum ETFs in July, the SEC has shown increased openness toward the cryptocurrency industry.
Additionally, the SEC has shifted its regulatory stance, dropping several lawsuits against major market players and forming a crypto regulatory task force to develop a clearer framework for the sector.
Market Reaction: PENGU’s Price Outlook
The news of a potential PENGU ETF has already impacted the token’s price action.
Analysts suggest that if investor interest remains strong, PENGU could test the resistance level at $0.0093, potentially leading to a rally toward $0.011. This would solidify PENGU’s position among the top Solana meme coins. At the time of writing, the asset is trading at $0.006323.
However, if demand weakens, PENGU could fall back to the support level at $0.0062. A break below this level could push the price down to $0.0057 or even $0.0050, wiping out recent gains.
The final SEC decision will be a crucial factor determining whether PENGU can establish itself among the leading crypto assets.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.