Canary Capital Files an Exchange-Traded Fund (ETF) Application with the Securities and Exchange Commission (SEC) for PENGU

Asset management company Canary Capital has officially filed an Exchange-Traded Fund (ETF) application with the Securities and Exchange Commission (SEC) for PENGU

Asset management company Canary Capital has officially filed an Exchange-Traded Fund (ETF) application with the Securities and Exchange Commission (SEC) for PENGU, the governance token of Non-Fungible Token (NFT) project Pudgy Penguins.

The application, which was submitted on the 20th of March, proposes to hold both the Spot PENGU token as well as the Puggy Penguins NFTs. If approved by the SEC, this would make it the first US-based ETF to hold an NFT, providing regulated institutional access to this emerging asset class.

As part of the filing, Canary Capital aims to offer investors access to the portfolio’s digital assets through a traditional brokerage account, eliminating the barriers and risks associated with directly acquiring and holding these assets. The trust also proposes to hold other digital assets, such as ETH and SOL that are directly or indirectly related to either the PENGU token or the Puggy Penguins NFTS.

The application further specifies that the portfolio's primary investment objective will be to track the performance of a basket of digital assets, with the PENGU token serving as the main tracking index component.

Moreover, the trust intends to engage in lending or borrowing activities in connection with its holdings of the PENGU token or other digital assets, aiming to generate additional returns for investors.

The ETF application comes as several asset management firms are seeking to launch crypto ETFs in the US. So far, only Bitcoin and Ethereum futures ETFs have been approved by the SEC, while applications for spot crypto ETFs have been pending for a period of time.

The approval of a PENGU ETF could mark a major turning point for NFTs and digital collectibles, many of which have struggled to gain institutional recognition as an asset class.