CBOE files to list Canary PENGU ETF giving exposure to the Solana meme coin and Pudgy Penguin NFTs.
The ETF will hold 80% to 95% in PENGU and up to 15% in Pudgy Penguin NFTs only.
Canary will hold ETH and SOL only to pay network fees and handle NFT transactions securely.
CBOE has officially filed the 19b-4 form with the SEC to list the Canary PENGU ETF. This move comes after Canary Capital filed the S-1 form two months ago.
https://twitter.com/CryptoCoinShow/status/1938104872697733225
The fund aims to offer institutional investors exposure to PENGU, a Solana-based meme coin, and Pudgy Penguin NFTs. It becomes only the second meme coin ETF proposal to reach this stage.
Structure and Holdings of the Fund
The ETF will be structured as a Delaware statutory trust and sponsored by Canary Capital Group LLC. It will not be registered under the Investment Company Act of 1940 and does not qualify as a commodity pool. The trust plans to hold between 80% and 95% of its total assets in PENGU. The remaining 5% to 15% will be in Pudgy Penguin NFTs.
Canary expects to maintain at least 95% of the fund’s total assets in these two core holdings. The fund will also hold limited amounts of ETH and SOL. These will be used solely to cover transaction fees on the Ethereum and Solana networks.
Purpose of ETH and SOL Holdings
The asset manager may convert cash into ETH to buy NFTs, as the marketplace operates using ETH. Proceeds from NFT sales may also be received in ETH. SOL will be required for transactions involving the PENGU token. The trust will hold only as much ETH and SOL as necessary for operations.
Listing Plans and Trading Mechanism
CBOE BZX Exchange filed the application under Rule 14.11(e)(4), which applies to Commodity-Based Trust Shares. Each share of the ETF will reflect a fractional interest in the fund’s underlying assets. The fund will create and redeem shares in units of 10,000, with all settlements made in cash.
Authorized participants will only use cash when creating or redeeming shares. The ETF’s net asset value (NAV) will be calculated daily at 4:00 p.m. ET. Intraday indicative values will be updated every 15 seconds during market hours. NAVs, historical data, and other metrics will be published on the trust’s official website.
Market and Regulatory Context
PENGU is the second meme coin to reach the SEC’s 19b-4 filing stage, following Dogecoin. Unlike other coins, PENGU lacks its own blockchain. It functions as a digital item within the Pudgy Penguins ecosystem. The fund marks the first SEC-reviewed ETF filing to include NFTs.
The filing argues that PENGU’s trading is decentralized and global, making price manipulation difficult. It claims manipulation would require coordination across multiple markets. The ETF will not engage in proof-of-stake or claim any forked tokens or airdrops. It will also not distribute any digital assets directly to shareholders.
