Canary Capital Files First NFT-Inclusive Crypto ETF Featuring Pudgy Penguins

Canary Capital has filed an S-1 form with the Securities and Exchange Commission (SEC) to launch a crypto exchange-traded fund (ETF) that provides exposure to the PENGU token and the Pudgy Penguins non-fungible token (NFT) collection. This marks the first crypto-related ETF offering connected to an NFT collection. According to the filing, the fund will invest in a portfolio consisting of PENGU tokens and NFTs from the Pudgy Penguins collection. Additionally, the fund will hold Solana (SOL) and Ethereum (ETH), which the filing describes as “necessary or incidental to the purchase, sale, and transfer of the Trust’s PENGU and Pudgy Penguins NFTs.”

PENGU, the native token of the Pudgy Penguins ecosystem, currently has a market capitalization of $435 million. Luca Netz, CEO of Pudgy Penguins, acknowledged the filing, calling it “history.” Igloo Inc., the parent firm behind the Pudgy Penguins collection, added: “We believe that Pudgy Penguins is the face of crypto, representing innovation and the mass adoption of blockchain technology. Being included in this filing is a strong validation of that belief.”

Canary Capital has a track record of unconventional crypto-related ETF filings. On November 12, 2024, the firm filed an S-1 form for the first Hedera (HBAR) ETF, which attracted attention as HBAR was outside the top 20 crypto by market capitalization. This trend has continued in 2025. Canary filed the S-1 form for the first Axelar (AXL) ETF on March 5 and followed up with the first Sui (SUI) ETF filing on March 17, shortly after registering it in Delaware on March 6. These filings suggest a broader effort by Canary to expand the scope of crypto-related ETFs beyond traditional assets such as Bitcoin (BTC) and Ethereum, testing the waters with the SEC on how far the filings can go.

Canary Capital's launch of an NFT-inclusive crypto ETF featuring the Pudgy Penguins collection represents a significant development in the digital asset market. This innovative product offers investors a diversified portfolio that includes both cryptocurrencies and high-value NFTs, providing a more comprehensive approach to digital asset investment. The inclusion of NFTs in ETFs reflects the growing acceptance and integration of digital assets into traditional financial markets, and is likely to encourage other financial firms to explore similar products. This development highlights the increasing sophistication of the digital asset market and the potential for NFTs to become a mainstream investment option.

The decision to feature the Pudgy Penguins NFT collection in the ETF is strategic, as it leverages the popularity and market value of this particular NFT collection. The Pudgy Penguins have become a symbol of the NFT market's potential, with their unique design and strong community support driving their value. By including this collection in their ETF, Canary Capital is positioning itself at the forefront of the digital asset revolution, offering investors a unique and valuable investment opportunity. This move is likely to attract attention from both individual and institutional investors, further solidifying Canary Capital's position as a leader in the digital asset space.

This move by Canary Capital is part of a broader trend of financial institutions recognizing the potential of NFTs and other digital assets as viable investment options. The launch of this NFT-inclusive crypto ETF is a testament to the growing acceptance and integration of digital assets into traditional financial markets. It reflects a broader trend of financial institutions recognizing the potential of NFTs and other digital assets as viable investment options. This development is likely to encourage other financial firms to explore similar products, further expanding the range of digital asset investment opportunities available to investors. The inclusion of NFTs in ETFs also highlights the increasing sophistication of the digital asset market, as investors seek more diversified and innovative investment strategies.