Canary Capital Files for a PENGU ETF, Which Will Hold the Governance Token of the Pudgy Penguins NFT Project

Canaries Capital has filed for a PENGU ETF, which will hold Pengu (PENGU), the governance token of the Pudgy Penguins NFT project.

Canary Capital has filed for a PENGU ETF, which will include Pengu (PENGU), the governance token of the Pudgy Penguins NFT project, according to a March 20 filing with the U.S. Securities and Exchange Commission (SEC).

If approved, it would be the first U.S. ETF to include non-fungible tokens (NFTs) alongside a spot cryptocurrency.

The filing indicates that the ETF will hold spot PENGU tokens and Pudgy Penguins NFTs. It will also include Solana (SOL) and Ethereum (ETH) to facilitate transactions. The fund aims to provide exposure to NFTs and digital assets through a regulated investment vehicle.

The ETF will be structured as a trust, with the initial series having a total offering of 50 million shares. Each share will be priced at $20, aiming to raise $1 billion for the fund.

The filing further reveals that the ETF will be passively managed and designed to track the performance of an index that measures the combined value of PENGU and Pudgy Penguins NFTs. The index will be calculated and maintained by a third-party index provider.

Moreover, the ETF will be actively managed for purposes such as administrative and operational matters, and it will be marketed and distributed by an affiliate of Canary Capital.

The fund's administrative procedures will be overseen by a trustee, and any material changes to the ETF will be subject to the approval of the majority of the fund's holders.

The filing also mentions that the ETF will be subject to certain taxes and regulatory obligations.

The filing for the PENGU ETF comes as the SEC continues to review several crypto ETF proposals. Since January 20, following a shift in the U.S. administration, the SEC has acknowledged multiple applications for ETFs that would provide direct exposure to crypto assets.

These proposals include offerings for Solana (SOL), XRP (XRP), Dogecoin (DOGE), and Official Trump (TRUMP) ETFs.

Some industry analysts have questioned whether ETFs holding altcoins and NFTs will attract significant investment.

Alex Krüger, a crypto researcher, made a comment on the Pengu ETF in a March 20 post on X.

“Pengu ETF announced. Price barely goes up. New ETFs for crypto assets have become an irrelevant joke. Most crypto ETFs will fail to attract AUM and cost issuers money.”

On March 20, Volatility Shares introduced two Solana futures ETFs, the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT). These funds track Solana's price movements using financial derivatives.

The SOLZ ETF follows Solana's price one-to-one, while the SOLT ETF provides 2x leverage. Despite these developments, spot Solana ETFs are still pending approval by the SEC.