Canary Capital Files with the SEC to Launch the First-Ever Pengu Exchange-Traded Fund (ETF)

Canary Capital has submitted a registration filing to the United States Securities and Exchange Commission (SEC) for the launch of the first-ever Pengu exchange-traded fund (ETF). This move adds to the growing list of crypto asset managers seeking regulatory approval for digital asset-based ETFs.

Canary Capital has submitted a registration filing with the United States Securities and Exchange Commission (SEC) for the launch of the first-ever Pengu exchange-traded fund (ETF).

This move adds to the growing list of crypto asset managers seeking regulatory approval for digital asset-based ETFs. As reported by Blockworks, the ETF would invest in the PENGU token, the official token of the Pudgy Penguins NFT project, as well as in Pudgy Penguins NFTs themselves.

According to a filing published Thursday, the ETF will also hold other digital assets, including Ethereum (ETH) and Solana (SOL), to support trading and transfers.

The ETF is defined in the registration statement as an investment trust that invests in digital assets such as PENGU tokens and Pudgy Penguins NFTs, among others. These holdings are critical for monitoring the token and the NFT assets.

If launched, the ETF will allow investors to track the price of PENGU and other NFTs in its portfolio without owning or hosting them as physical assets. The trust may also contain other assets in the form of digital media for the buying and selling besides conversion and redemption of the fund.

“Other non-security digital assets owned by the trust include SOL and ETH that may be necessary or incidental,” the filing added.

Pudgy Penguins released the Ethereum-linked PENGU token in December. The project has been popular in the crypto sphere as a collection of NFT and social networking.

While PENGU is developed on Ethereum, there is a growing sentiment that it can be regarded as a Solana meme coin since most of its trading activity occurs on Solana platforms.

Following the ETF announcement, the PENGU token experienced a sharp 10% price increase during early trading on Thursday. It broke above previous resistance levels and moved past the Ichimoku cloud, indicating a possible shift in momentum.

The Relative Strength Index (RSI) for PENGU also moved from 44.86 to 62 shortly after the news, indicating increased buying activity. However, the RSI remains below the overbought level of 70, suggesting that further gains are still possible.

Many of the analysts are now focusing on the $0.0093 as the next level of resistance backed by the Robinhood listing last week. A breakout above that level means the token will be trading above the $0.010 mark, the first time in a month. But if the momentum disappears, the token may fall back to $ 0.0062 support area.

Canary Capital is applying for ETF approval as several asset managers are submitting filings for altcoin ETFs in recent months. These filings follow the approval of spot Bitcoin and Ethereum ETFs by the SEC earlier in 2024.

Recently, several filings for altcoin ETFs have been submitted to the SEC. Among them are applications from asset managers to list ETFs that would track the prices of Dogecoin (DOGE), Sui, Hedera, and BONK.

Despite the recent trend, the SEC has delayed decisions on many of these applications, especially those focusing on meme coins and smaller tokens. Some market participants have questioned whether ETFs for meme coins and NFTs would meet regulatory standards.

“The likelihood of approval for these funds remains unclear due to high volatility and limited trading history,” a statement from the filing added.