Canary Capital Files for First U.S. ETF Holding NFTs, PENGU Token
2min read Canary Capital has filed an S-1 registration statement with the U.S. Securities and Exchange Commission for a new ETF that aims to invest in the $PENGU meme coin and Pudgy Penguins non-fungible tokens. If approved, this would be the first U.S. ETF to hold NFTs directly. The ETF seeks to expose investors to the $PENGU token, which launched in December, and Pudgy Penguins NFTs. The fund will also hold other digital assets, including Solana (SOL) and Ethereum (ETH), necessary for transactions involving PENGU and the NFTs. This structure represents a rare combination of cryptocurrency and NFTs within a single regulated investment vehicle.
Ask Aime: What impact will Canary Capital's new ETF have on the crypto and NFT markets?
The Pudgy Penguins NFT collection has seen renewed interest following the ETF announcement, with its floor price rising above 10 ETH. The $PENGU token, tied to the Pudgy Penguins ecosystem, currently holds a market capitalization of approximately $438 million. The filing comes amid a wave of new ETF applications focused on digital assets, including altcoins and memecoins. However, while Bitcoin and Ethereum spot ETFs have gained regulatory traction, products centered on smaller crypto assets and NFTs face a more uncertain path. Some industry analysts remain skeptical about the demand for such funds. “Pengu ETF announced. Price barely goes up. New ETFs for crypto assets have become an irrelevant joke,” crypto researcher Alex Krüger said in a March 20 post on X, suggesting that most crypto ETFs may struggle to attract assets under management.
Despite the skepticism, the proposed ETF could offer a new avenue for institutional and retail investors looking to gain exposure to the Pudgy Penguins ecosystem through traditional financial channels. The SEC will now review the filing, though there is no set timeline for approval. Canary Capital is doubling down on its crypto ETF ambitions—fresh off filing for a Pudgy Penguins NFT ETF, the firm has also applied for a spot Sui ETF to expose investors to the Sui Network’s native token. If approved, it would be the first ETF tied to Sui, with a $7.4 billion market cap and ranking among the top 25 cryptocurrencies. This latest move adds to Canary’s growing list of ETF filings—bringing its total to six—and reflects a broader industry push to expand beyond Bitcoin and Ethereum, which saw spot ETFs approved in 2024.
With the SEC now reviewing applications for Solana, XRP, Dogecoin, and even memecoins like Official Trump, the race for new investment products is heating up. Since President Donald Trump took office, optimism around crypto regulation has surged. The SEC has softened its stance, dropping enforcement actions and reconsidering custody rules for digital assets. This shift has led issuers to anticipate a more favorable regulatory environment. Meanwhile, demand for existing crypto ETFs remains strong. Bitcoin ETFs recorded a single-day inflow of $274.59 million on March 17, while Ethereum products saw continued outflows. With the SEC’s final decisions on multiple ETF applications expected in the coming months, demand for regulated crypto investment products is rapidly increasing. A final ruling on these filings could mark a defining moment for integrating NFTs and smaller crypto assets into mainstream finance—testing both investor appetite and regulatory flexibility. As more projects push for regulated pathways, the relationship between traditional markets and digital assets may evolve faster than ever, raising the stakes for pioneers, policymakers, and participants alike.
