SEC Accepts the Application for the Pudgy Penguins PENGU ETF: The First Mixed Index Fund of Meme Coins and NFTs

The SEC has accepted the application for the Canary PENGU ETF, marking the first time Meme coins and NFTs are included in a traditional ETF structure. (Background: Can Abstract Chain break through the competition among various L2s backed by the soaring $PENGU?) (Background information: The Pudgy Penguins are flooding the crypto social circle: a victory for elite culture in the crypto world.) The U.S. Securities and Exchange Commission (SEC) officially accepted the application for the Canary PENGU ETF from Canary Capital on August 1. This is the first spot ETF that packages the Meme coin PENGU and Pudgy Penguins NFTs together, knocking on the door of mainstream investment. The ETF proposal for the Canary PENGU ETF was submitted on March 20 this year. According to the application, this ETF primarily holds PENGU tokens, with a weight allocation of approximately 80%-95%; the remaining 5%-15% is allocated for top Pudgy Penguins NFTs. According to the application, fund managers plan to adjust the NFT holdings based on rarity, visual appeal, and market price rotation, while also holding a small amount of Solana and Ethereum native tokens to ensure liquidity. By ETF-ifying 'on-chain operations', investors can buy and sell high-volatility meme coin mixed NFT digital assets in familiar securities accounts. The price of the PENGU token has increased by 132% over the past 30 days, with a market capitalization exceeding $2 billion. Regulatory challenges The SEC's subsequent review will face three major issues: asset classification, price manipulation prevention, and investor protection. Are NFTs classified as securities, commodities, or an independent asset class? Do meme coins meet the Howey Test? These undefined areas will affect disclosure obligations and custody regulations. Furthermore, since NFTs cannot be settled using traditional standardized units, how the fund values and rebalances is an unprecedented technical challenge. The fragmentation of global regulation and the anonymous nature of on-chain transactions also increase the difficulty of anti-money laundering (AML) compliance. The SEC's acceptance is just the beginning, and final approval will still require multiple rounds of consultations and modifications. If the Canary PENGU ETF can pass the review, it will undoubtedly provide new allocation options for traditional capital and may lead to more 'token + NFT' hybrid products being released. However, keep in mind that due to Canary Capital's frequent submissions of altcoin ETF applications (including AXL, SUI, LTC, etc.), some in the community believe this may be a marketing tactic, and it is recommended that you maintain rational thinking when considering this information. Related Reports: U.S. Cryptocurrency ETFs receive regulatory green light: Universal listing standards may be implemented within 60 days; which projects will be winners? Japan's largest Osaka Exchange plans to launch cryptocurrency derivatives, and JPX is also considering launching crypto ETFs. Rich Dad warns 'ETFs are just wallpaper scams': Owning physical gold, silver, and Bitcoin is the true way to wealth in turbulent times. 'SEC accepts the application for the Pudgy Penguins PENGU ETF: The first mixed index fund of Meme coins and NFTs' was first published in BlockTempo (the most influential blockchain news media).