Canary Capital just created a seismic shift in the crypto world by filing with the U.S. Securities and Exchange Commission (SEC) to establish an ETF for Pudgy Penguins (PENGU). This is the first time in history that an exchange-traded fund (ETF) combines both cryptocurrency and NFTs, opening up new potential for the intersection between traditional finance and digital assets.



Canary Capital wants to create an ETF for Pudgy Penguins: A historic move?


According to the filing, this ETF fund will include the token $PENGU and the Pudgy Penguins NFT collection. Additionally, the fund will also hold Solana ($SOL ) and Ethereum ($ETH ), two important blockchains for trading and storing these assets.


Canary Capital's inclusion of Pudgy Penguins in its portfolio reflects recognition of this ecosystem. Luca Netz, CEO of Pudgy Penguins, excitedly stated:



"This is a historic moment. We believe that Pudgy Penguins is not just an NFT collection, but a symbol of innovation and broad acceptance of blockchain."



Igloo Inc., the parent company of Pudgy Penguins, also emphasized that this is a significant turning point, making it easier for the NFT ecosystem to access traditional investors.



Market reaction: PENGU price and Pudgy Penguins NFT experience significant volatility


Right after the news about the Pudgy Penguins ETF was announced, the price of PENGU surged by more than 7%, reaching $0.0073 before falling back. Compared to 24 hours ago, PENGU is still down nearly 2%.


Meanwhile, the floor price of #NFT​ Pudgy Penguins has shown a slight increase of 4% to 9.75 ETH. This indicates that investors are hopeful about the potential of this ETF fund to enhance liquidity and value of the collection in the long term.



Canary Capital and its strategy to expand crypto ETFs


Canary Capital is not a newcomer in the crypto ETF space. The company has consistently surprised with groundbreaking ETF filings:



  • 12/11/2024: Application for Hedera (HBAR) ETF, even though HBAR is not in the top 20 cryptocurrencies by market capitalization.


  • 05/03/2025: Filing for Axelar (AXL) ETF.


  • 17/03/2025: Continuing the registration for Sui (SUI) ETF.



Canary Capital's focus on non-traditional assets like NFTs shows a bold strategy: expanding the scope of crypto ETFs beyond Bitcoin and Ethereum.


Eric Balchunas, a senior ETF expert at Bloomberg, has acknowledged that Canary Capital is making unexpected moves. He even had to Google to learn about Hedera when the company applied for the HBAR ETF.



Will the SEC approve the Pudgy Penguins ETF?


While the Pudgy Penguins ETF could bring a new wave of investment for NFTs, the likelihood of SEC approval remains uncertain.


Recently, the SEC has delayed a series of altcoin ETFs, including ETF funds for Litecoin (LTC), Solana (SOL), and XRP that #CanaryCapital also proposed. The agency tends to extend the approval time until the deadline, similar to what they did with Bitcoin and Ethereum ETFs.


However, if the Pudgy Penguins ETF is approved, this would be a major milestone, paving the way for the combination of NFTs and traditional finance. This could help NFTs reach a wider audience among institutional investors, rather than being limited to the crypto community as they are now.



What future lies ahead for NFT ETFs?


Despite many legal barriers, Canary Capital's move indicates a new trend: bringing non-traditional digital assets into mainstream investment portfolios.


If successful, the Pudgy Penguins ETF could set a precedent for a series of other NFT ETFs, making this market more transparent and liquid, attracting institutional capital. This could also be an opportunity for NFTs to overcome the stigma of being merely speculative assets, aiming for more practical applications in finance.


Will the SEC pave the way for NFT ETFs? Or will Pudgy Penguins be blocked like other altcoins? The answer may come soon in the coming months.