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Canary requests an ETF for PENGU that tracks the Pudgy Penguins token

A new fund that tracks PENGU would add a meme-inspired cryptocurrency to the growing list of digital asset ETF applications from the firm.

Canary Capital has submitted an application to the Securities and Exchange Commission (SEC) to include a PENGU ETF for Pudgy Penguins, marking its latest attempt to expand cryptocurrency investment options through exchange-traded products (ETFs).

In a Form S-1 filing with the SEC on Thursday, the cryptocurrency investment firm requested the creation of the Canary PENGU ETF, which would primarily hold PENGU tokens directly. The proposed fund would also hold positions in other digital assets, such as Solana and Ethereum, necessary for the purchase and transfer of PENGU.

Niche cryptocurrencies beyond Bitcoin and Ethereum

This decision comes at a time when investors seek exposure to niche cryptocurrencies beyond market leaders like Bitcoin and Ethereum. PENGU, launched in December 2024, serves as the official token of the Pudgy Penguins NFT collection, making this proposed ETF unique in the evolving digital asset market.

According to the application, the fund would determine its daily value based on the prices of PENGU provided by CoinDesk Indices, deducting management fees and expenses. The trust would invest between 80% and 95% of its assets in PENGU tokens and between 5% and 15% in Pudgy Penguin NFTs.