Canary Capital Files for the First Exchange-Traded Fund Holding Both Cryptocurrency and Non-Fungible Tokens

According to a March 20 filing, Canary Capital plans to launch an ETF tracking the Pudgy Penguins ecosystem, combining exposure to the project's governance token, PENGU (PENGU), along with a collection of its NFTs.

Canary Capital is planning to launch an exchange-traded fund that holds both cryptocurrency and non-fungible tokens, according to a March 20 filing.

This would make it the first asset manager to offer such an ETF and would also be the first US-listed ETF to hold NFTs directly if approved.

The trust will hold spot Pengu as well as Pudgy Penguins NFTs, with additional digital assets like Sol and Eth included "as necessary or incidental" for transactions involving the fund's primary holdings, according to the filing.

This is intended to streamline operational needs such as purchasing, selling, or transferring assets within the trust, according to the filing.

The Pudgy Penguins collection is among the most recognized in the NFT space, known for its playful art and strong community presence. Pengu was launched in December as the ecosystem's governance token, designed to give holders a say in the project's direction.

Since its launch, Pengu has also landed on platforms like Robinhood. However, the price has struggled to maintain itself, currently down over 90% from December's all-time high. News of the ETF filing sparked a brief rally, but the gains faded within an hour.

This filing also adds another pick to Canary's growing list of crypto ETF applications. Just days earlier, the firm submitted paperwork for a spot ETF tied to Sui, the native token of the Sui layer-1 network.

Last month, its Litecoin ETF was listed on the Depository Trust and Clearing Corporation under the ticker LTCC.

The pace of ETF filings has picked up across the board, especially since the SEC began shifting its stance on the products under President Donald Trump's new term.

Dozens of altcoin ETF proposals have hit the regulator's desk in recent weeks, ranging from serious L1 contenders like Solana to more speculative picks like Dogecoin and even Official Trump.