Canary Capital Files for the First Pengu ETF

Canary Capital has filed for what would be the first exchange-traded fund of its kind — a Pengu ETF — as firms forge on to see what might stick for the U.S. Securities and Exchange Commission.

Canary Capital is making a move to launch the first-ever exchange-traded fund (ETF) that will invest in an altcoin NFT project, specifically targeting the Pengu token and Pudgy Penguins NFTs, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

The institutional crypto trading and management firm made the filing on Thursday for the fund, which will also hold other cryptocurrencies, such as SOL and ETH, in addition to the Pengu token and Pudgy Penguins NFTs.

The Ethereum-based NFT project launched the Pengu token in December.

"In seeking to achieve its investment objective, the Trust will invest in a portfolio consisting primarily of (1) PENGU, the official token on the Pudgy Penguins project, and (2) Pudgy Penguins non-fungible tokens ('NFTs')," the filing stated. "The Trust will also hold other digital assets, such as SOL and ETH, that are necessary or incidental to the purchase, sale and transfer of the Trust’s PENGU and Pudgy Penguins NFTs."

Canary is applying for several altcoin ETFs, including one to track Sui, as well as others for Hedera and Litecoin.

Firms have been applying for the SEC to approve several types of crypto ETFs over the past few months, ranging from ones that will track SOL and XRP to DOGE and now Pengu.

Earlier this year, the SEC approved the listing of the first spot Bitcoin ETFs and the first spot Ethereum ETFs. The agency is also said to be nearing a decision on several other types of crypto ETFs, such as ones that will track baskets of cryptocurrencies or that will be issued by blockchain companies themselves.

The SEC’s stance on crypto has reportedly become more favorable under the Biden administration.

Earlier this year, the SEC dropped an enforcement action against a major crypto industry player and created a crypto task force to work out how to regulate the industry.