Canary Capital Files for Canary PENGU ETF with the US Securities and Exchange Commission

On March 20, the US financial institution Canary Capital submitted an application for the Canary PENGU ETF to the US Securities and Exchange Commission (SEC)

The US financial institution Canary Capital has applied to the US Securities and Exchange Commission (SEC) for an ETF that holds both the Fat Penguin NFT and the $PENGU token, according to the submitted plan, the ETF fund plans to hold 80-95% of the $PENGU tokens and 5-15% of the Pudgy Penguins NFT.

As soon as this news came out, it sparked widespread discussion within the Fat Penguin community and the broader crypto market. Even Canary's avatar on social media is a Fat Penguin NFT.

Canary Capital, which was established only six months ago, has submitted multiple applications for altcoin ETFs, but this practice has also raised many questions about how great is the real demand for these altcoin ETFs? Or is this more of a gimmick and marketing trick?

The news of PENGU ETF caused the price of the currency to rise and then fall, will traditional investors enter the market?

After the announcement of the Pengu ETF, the price of $PENGU initially surged by nearly 10%, reaching $0.0075, showcasing the market's short-term optimism towards the news. However, as of 7:30 pm on March 21, its price had fallen back to $0.0062, decreasing by 8.63% over 24 hours, indicating that the market's enthusiasm for the news failed to sustain in the long term. Although the inflow of funds increased significantly after the announcement, achieving a 24-hour trading volume of $135 million, the price trend failed to maintain its strength.

The Pengu ETF submitted this time has caused some controversial voices within the Fat Penguin community. For example, Fat Penguin community user @beast_ico said that $Pengu ETF might be the most outrageous thing I have seen recently. We don’t even need an ETF for “ghost chains”, let alone a memecoin that is less than 6 months old. If those “Boomers” (traditional investors) are not interested in ETH (let alone SOL), why would they touch something called Pengu?

But digital artist @Tuteth_ said, "We are really going to die, brothers. I saw the hot discussions about $Pengu and Pudgy Penguin ETF, which is simply rubbish. Some of them are my friends. But you don't even realize that you are contributing to the 'tall poppy syndrome' (envy of successful people and suppression of leaders). Bitcoin was also ridiculed as the stupidest thing in the world. The meaning of staying in this circle is to enjoy these seemingly absurd but ultimately true possibilities because we have witnessed them happen. We have come all the way to today, but when we see this ETF, we say: 'Hey, this is over the line'? Think about it, your own avatar is an animal, and you chat about cryptocurrency with your friends online every day. All of this is absurdity to the extreme - but you just draw a line here, it makes me laugh to death."

It can be seen that there are differences in the attitude of the Fat Penguin community towards this ETF application. Some opponents believe that this is an absurd hype, while supporters see it as an inevitable step in the evolution of NFT culture.

S-1 filing threshold is low? Canary Capital applies for copycat ETFs one after another

PANews once introduced the crypto investment company Canary Capital in October 2024, when it was only established for a month. The founder and CEO of Canary Capital is Steven McClurg, who is also the co-founder ofValkyrie Funds. It is worth mentioning that Justin Sun is also an investor inValkyrie. In October 2021,Valkyrie was approved to launch the first batch of Bitcoin futures ETFs in the United States. StevenMcClurg leftValkyrie Funds in August 2024 and founded the crypto investment company Canary Capital in September. On October 1, Canary Capital announced the launch of the first HBAR trust in the United States. Subsequently, Canary also applied for SUI ETF, ETF tracking the price of Axelar (AXL), Litecoin (LTC) ETF, AXL Trust, Solana ETF, and XRP ETF.

Some analysts pointed out that the low cost of submitting S-1 documents may be one of the reasons for the recent large number of applications for altcoin ETFs. According to analyst Jason Chen’s interpretation on March 7, “S-1 is the first step in registering an ETF, and what is the S-1 threshold for submitting an ETF? There are two hard thresholds. First, it needs to be a company registered in the United States that includes asset management and financial businesses. Second, it costs about US$100,000 to pay for the cost of drafting the S-1 document.”

Earlier on March 6, Canary Capital applied to the US SEC to launch an ETF tracking the cross-chain protocol Axel