Asset management firm Canary has officially filed for a spot ETF for the PENGU memecoin, including other digital assets.
Details of the ETF Application
In an official filing with the SEC, Canary has applied for the creation of a spot ETF for the Pudgy Penguins (PENGU) memecoin. The proposed ETF is expected to include not only PENGU but also digital assets such as Solana (SOL) and Ethereum (ETH) necessary for transaction facilitation related to the trust's portfolio.
Fund Asset Structure
According to the filing, the trust will divide its assets into three groups: Portfolio Cryptocurrencies (PENGU, SOL, and ETH), Portfolio NFTs (Pudgy Penguins NFTs), and Portfolio Digital Assets, excluding cash assets.
Potential and Risks of PENGU ETF
Canary's filing highlights the speculative nature of PENGU, stating there is no guaranteed benefit or continued appreciation. The trust also clarifies that ETF shareholders will not receive the rights or benefits directly available to PENGU holders. If approved, this would be the first financial product to blend memecoins and NFTs in an institutional investment vehicle.
Canary's application for a PENGU ETF marks a significant step in the development of the memecoin and NFT market, despite existing risks and uncertainties.
